Arguably the most recognised form of asset finance, Hire Purchase is often used by individuals and business' who wish to own the asset from the outset of the agreement. Depending on the scenario, possible options include VAT deferment, seasonal payments, balloons, fixed/variable payments and minimal deposits. If you are currently, or looking to consider, purchasing an asset via Hire Purchase, please do not hesitate to contact us and obtain a quotation.
Basics of a Hire Purchase:
Supplier is paid directly by the funder for the asset only, with the customer paying the VAT.
Asset goes on the business balance sheet and you are able to claim Writing Down Allowances, along with tax relief on the interest element of your payments.
At the end of the agreement, there is a small "option to purchase" fee.