Hire Purchase Finance
Finance option for Vehicles, Machinery, Equipment and more!
Make monthly payments which helps you retain capital
You have the option to purchase the asset at the end of your agreement
Helping Your Hire Purchase Finance Needs
Hire Purchase agreements differ from other lease agreements as you have the option to purchase the asset outright at the end of your term. A term is the agreed timescale that you will pay for the asset through monthly affordable installments.
Paying for your assets in monthly installments means that you can spread the cost across a period of time, making it easier to budget and helps you retain capital in your business for further growth.
This payment method is suitable but not limited to purchasing vehicles (company cars and vans), machinery, construction and commercial equipment.
Key Features of Hire Purchase Agreement:
- The lender purchases the asset
- The funding is secured against the asset
- You repay the finance company over an agreed term
- You will typically pay all the VAT up front
What’s the Benefits of Hire Purchase?
- More time to repay – Spread the costs over an agreed period of time
- Tax efficient – You can offset hire purchase interest and charges against pre-tax profits
- You will own the Asset at the end of the agreement (if you wish you can then sell the asset)
The lender retains ownership of the asset until the finance is completed. Whilst you are still making payments, you are not allowed to sell or dispose of the asset without the lender’s permission. The lender will be able to repossess the asset if your business falls behind with payments.