This Dynamic Purchasing System (DPS) acts as a funding platform, providing access to a range of lenders who can provide funding for a customer looking to acquire a new asset. The DPS offers a range of leasing options including:
- hire purchase: also known as an instalment plan where the user will become the owner of the asset
- finance lease: the finance company is (typically) the legal owner of the asset for the duration of the lease
- operating lease: the supplier, permits the user (lessee), to use an asset for a period of time, which is shorter than the economic life of the asset, without any transfer of ownership
- sale and leaseback: an arrangement where the company that sells an asset can lease back that same asset from the buyer
- asset secured loans: this is where the borrower provides an asset (typically the one purchased with the loan) to secure a loan and, if the borrower doesn’t pay the loan, the lender can take ownership of the asset
For more detailed definitions for each of these leasing options, read the agreement specification.
As part of a twin commercial solution, this agreement is supported by RM6146 Leasing Advisory Services.
When using this DPS you can either:
- choose to run a further competition directly with funders
- appoint a leasing advisor through RM6146
The leasing advisor will then run a further competition to get funding through this DPS on your behalf.
Below is a list of four filter categories and a brief description. When registering to join the DPS a supplier will select which services they would like to offer from each of the four filter categories.
As a buyer, you will also need to use the filters to select which options are suitable for your needs. The options you select will create a shortlist of suitable suppliers.
Filter 1: customer type
Allows the supplier to select which areas of the public sector they are interested in lending to:
- central government
- ministry of defence
- local authorities
- health
- education
- other
Filter 2: funding type
Provides a choice of funding arrangements including:
- hire purchase
- operating lease
- finance lease
- sale and leaseback
- loan (asset secured)
Suppliers can select to offer one or more funding options.
Filter 3: asset class
The majority of assets can be funded through the DPS with only a few exceptions:
- fleet can be financed through this DPS where a Hire Purchase, Operating Lease or Finance Lease is needed
- where a Contract Hire is required, use our Vehicle Lease, Fleet Management & Flexible Rental Solutions agreement (RM6096)
- property
Suppliers can choose the assets which they would consider funding.
Filter 4: engagement size
Specifies the value of the asset being funded and allows suppliers to choose the value range they would consider funding. The asset value must be at least £2000 to get funding through the DPS, and we have not applied a maximum limit.