Disclosure Form

Bithell Davies Funding Solutions Limited is authorised and regulated by the Financial Conduct Authority (FCA) under Firm Reference number 1032073. You can verify this on the Financial Services Register by visiting www.fca.org.uk/register/. ICO Registration Number ZB797752. We are a credit broker, not a lender. We work with a carefully selected panel of funders; a full list is available upon request. Our services for limited companies, limited liability partnerships, and unlimited liability partnerships with four or more partners are outside the scope of the Financial Conduct Authority's authorisation and regulation.


We aim to find a competitive and suitable finance solution based on our understanding of your situation and needs, sourced from the panel of asset finance lenders we work with. Other options may be available in the market.

We want to help you make an informed decision about your financial options. We may visit you at your business premises and discuss your funding needs and your firm’s financial situation. We aim to develop a strong understanding of your business so that we can match available financial products to your exact needs. Alternatively, we can arrange an online meeting or call to review the same details.

We will provide you with details of one or more possible solutions. We will help you to understand different asset finance options and how they compare to other finance products. We will not provide specific advice or recommendations on whether to proceed. However, if you are unsure about any financial product or option, please don't hesitate to ask us for assistance. We are always happy to speak with anyone who supports you and your business.

We cannot provide specific advice on the accounting and tax implications of different products for your business. If you require additional assistance, we recommend consulting your accountant or visiting the British Business Bank’s Finance Hub www.british-business-bank.co.uk/business-guidance/

If you decide that a finance product is right for your needs and wish to proceed, we will introduce you to the relevant lender and assist you with your application.


We do not charge our clients a fee for our services directly. Whichever lender we introduce you to, we will receive a commission from them. Not all lenders on our panel operate the same commission models. Lenders pay different amounts depending on commission models and interest rates. For transparency, we work with the following commission models: fixed fee, fixed commission rate, and a percentage of the amount you borrow. Under some commission models, the more you pay the lender, the more we may receive by commission.

You will be informed of the commission amount before signing the finance agreement.

For some lenders and products, excluding motor finance, our commission is added to the interest rate set by the lender, usually ranging from 0% to 4% of the amount borrowed. For other lenders and products, including motor finance, the lender sets a rate that already includes our commission, and the commission rate is a fixed amount over which we have no discretion. For example, one lender pays a fixed commission of 2.8% on the advance. We may also receive a fixed payment, which is a share of the setup fee charged, for handling documentation on behalf of the lender. The commission amount will be explicitly disclosed by way of a Commission Disclosure Document, which you will be asked to sign.

These arrangements influence the total amount payable under the agreement and help ensure that the commission we earn fairly reflects the work we will undertake to meet your requirements. We will be happy to discuss this further with you.


Please see our Complaints Policy at https://www.bithelldavies.com . In the unlikely event that you have a complaint about our service, please get in touch with us:

• In writing: Bithell Davies Funding Solutions, 68 St. Michael Street, Dumfries DG1 2QF
• By telephone: Jack Bithell – 01387 259 678/ 07731849438
• Email: Jack Bithell – jack@bithelldavies.com

We will acknowledge your complaint within five working days. We aim to resolve complaints within 2 weeks and provide a final response to all complaints within 4 weeks. If you are not satisfied with our response to your complaint, you may refer the matter to the Financial Ombudsman Service (FOS). This applies to consumers and most small businesses. Details of which companies can use the service are available at https://sme.financial-ombudsman.org.uk/complain/can-help . You must contact FOS within six months of receiving our final response letter. They can be contacted in the following ways:

• Post: Financial Ombudsman Service, Exchange Tower, London, E14 9SR
• Telephone: 0300 123 9 123
• E-mail: complaint.info@financial-ombudsman.org.uk
• Website: financial-ombudsman.org.uk

For details of how we use any personal data we collect, please see our Privacy Notice at https://www.bithelldavies.com

When you request Bithell Davies Funding Solutions Limited to source finance, the Funders with whom we deal are likely to check the following records about you and your business partners:

1. Personal and business records at Credit Reference Agencies (CRA). When the CRA receives a search from a Funder, it may place a footprint on your credit file that other lenders may see. The CRAs may supply both public (including the electoral register) and shared credit and fraud-prevention information.
2. If you are a director, the funder may seek confirmation from CRAs that the residential address that you provide is the same as that shown on the restricted register of directors’ usual addresses at Companies House. The funder may search all directors, both as individuals and in their capacit as directors/guarantors.

This information aims to help our clients decide whether asset finance is the most suitable product for their needs. We will be delighted to discuss this further with you to ensure you have all the information you need to make an informed decision.

DO I NEED ASSET FINANCE?

The main options for financing newly acquired equipment are:

• Purchase outright for cash
• Bank facility, i.e., overdraft
• Raise new capital
• Rent for a short period (typically less than one year)
• Take out an asset finance agreement. A lender will purchase the equipment from the supplier you have selected at the price you have negotiated. You will then hire or lease the equipment from the lender.

In deciding which option to select, relevant factors may include:

• Whether you have the cash to buy outright
• How long do you need the equipment for
• Costs of the different options

Most asset finance arrangements involve paying a deposit and then making monthly payments. The key difference between products lies in what happens at the end of the agreement and who retains title to the equipment.

• Hire Purchase: Own the asset with fixed repayments.
  
  
  Ideal for: Businesses wanting to own the asset outright while spreading the cost. Hire Purchase lets you spread the cost of an asset over time with fixed payments. Choose between fixed payments or take advantage of falling rates with either fixed or variable interest rates. Once you’ve made all the payments, including a small option-to-purchase fee, the asset is yours. This option gives you ownership while keeping your cash flow healthy.


• Finance Lease: Get the most out of the asset, then dispose of it when you’re ready.
  
  
  Ideal for: Businesses wanting flexibility and use of the asset without the commitment of ownership. With a Finance Lease, you have use of the asset for an agreed term, typically covering most of its value. At the end of the lease, you can continue renting at a reduced cost, upgrade, or sell the asset and receive a share of the proceeds. This approach gets you pretty close to the benefits of owning the asset without upfront purchase costs.


• Operating Lease/ Contract Hire: When lower capital outlay is a higher priority.
  
  
  Ideal for: Businesses needing shorter-term use without ownership commitment. Operating Leases and Contract Hire let you use the asset for a set period, usually shorter than its useful life. You pay for the depreciation, not the full value, resulting in lower payments. Return the asset at the end of the lease without any ownership responsibility.


• Business Loan: Flexible funding when you need it most.
  
  
  Ideal for: Businesses needing flexible capital for growth, investment, or operational expenses. A business loan provides a lump sum of capital to help with any business need - whether it’s expansion, equipment, or working capital. Repayments are made over an agreed term at a fixed interest rate.


• Re-finance: Unlock cash from existing assets.
  
  
  Ideal for: Businesses wanting to release equity from owned assets for growth or working capital. Re-financing lets you release capital tied up in existing assets, like vehicles, machinery, or equipment. The lender provides a lump sum or structured payments, and you continue using the asset while repaying the loan over time.

In deciding which option to select, relevant factors may include:

• How long do you expect to use the equipment for
• The income or corporation tax, VAT, and accounting treatment of the product
• The terms and conditions of the agreement

Asset finance may be suitable in the following circumstances:

• If alternative forms of borrowing are more expensive overall or not available
• If you are concerned that a loan facility may be withdrawn (asset finance facilities generally cannot be withdrawn during the agreed term of the facility)
• You require relatively fast and straightforward access to finance

Asset finance may not be suitable in certain circumstances:

• If you have ready access to cash or any less expensive alternative form of borrowing
• If you are not sure if you will need the equipment for the minimum contract period
• If you are not sure that the equipment will be maintained and kept in a usable condition for the minimum contract period

For more details of factors affecting suitability, see the Guidance published by the British Business Bank www.british-business-bank.co.uk/business-guidance/guidance-articles/finance/what-is-asset-finance/.

Determining whether a finance agreement is regulated or unregulated is essential for businesses, as it directly impacts your legal protections, responsibilities, and financial risk. What does regulation mean? Regulated agreements fall under the Consumer Credit Act (CCA) and provide significant legal protections: You receive: Mandatory pre-contract credit information and explanations, cooling-off rights, clear rules on interest, charges, and repossession, protection from unfair contract terms, and the ability to make overpayments without early-settlement penalties. Regulatory oversight by the Financial Conduct Authority (FCA) In short, regulated agreements protect customers and require lenders to meet strict standards. A finance agreement is unregulated if: (Here, 'business use' means the goods are being purchased for use in running or operating a business, such as buying equipment or vehicles for company operations, rather than for personal or family use.)

• - The customer is a limited company, LLP, or partnership with 4+ partners, or
• - The amount financed exceeds £25,000, and the agreement is for business use.

Unregulated agreements are not covered by the Consumer Credit Act, so you do not receive the same statutory rights or required disclosures:

• No pre-contract credit information (PCCI) and pre-contractual explanations (PCE)
• No guaranteed cooling-off period, unless the finance contract voluntarily includes one
• No voluntary termination rights. Since unregulated agreements fall outside the CCA, you cannot rely on the 50% rule (“halves rule”) or return the asset early.
• No statutory repossession protections
• There is no legal requirement for interest rate disclosure, unless the lender chooses to provide it.

Unregulated agreements are not subject to FCA disclosure rules, so interest charges and rates may not be fully disclosed. Terms are primarily governed by contract law, so protections depend on the written agreement, with fewer restrictions and less regulatory oversight. Bottom line: Unregulated agreements provide fewer statutory rights, give lenders greater flexibility, and place a greater responsibility on the business to review the contract. Key risks of unregulated agreements include possible hidden fees, unclear interest rates, limited repossession protections, and strict penalties for late payment or default. To reduce these risks:

• Ask your lender for a full breakdown of all fees, charges, and interest rates in writing before signing.
• Carefully review repossession and default terms to understand your exposure.
• Make sure you understand when and how penalties apply.
• Seek clarification on any points that are unclear or seem ambiguous.
• Consider having an independent legal or financial advisor review the agreement if possible.

Taking these steps helps protect your business interests in unregulated finance agreements. If you are entering an unregulated agreement, review all contract terms carefully, especially those related to fees, charges, and default procedures. Ask questions about unclear clauses, avoid signing hastily, and consider independent legal advice to ensure you understand your rights and obligations. Professional advice is especially important for large sums, complex terms, unfamiliar structures, or uncertainty about any aspect of the agreement. In cases involving significant financial commitments, unusual language, multiple parties, or non-standard arrangements, guidance from a legal or financial advisor can help protect your business and prevent costly mistakes.

* High-net-worth Individual definition - a person who earns over £150k per annum or has net assets (excluding property) of over £500k

** Discuss with us whether there is an option to "opt out" of the HNWI option.

The information on the previous page is a fair representation of the verbal explanation I received, and I have been given the opportunity to digest and understand the product I am applying for. All my questions were answered to my satisfaction.