Spread the cost of an asset for your business over time with a hire purchase agreement
Hire Purchase flexibility
Hire Purchase enables you to acquire an asset while paying for it in instalments over an agreed timescale – the term. At the end of the term, you have the option to purchase the asset outright.
Far more flexible than a conventional loan, Hire Purchase lets you spread the cost of your investment over the life of the asset, making it easier to budget. Hire Purchase is particularly suitable for acquiring vehicles, machinery, construction and commercial equipment with a resell value.
Benefits of Hire Purchase
- More time to repay – Spread the cost over the life of the asset
- Seasonality – We can structure repayments to take account of seasonal fluctuations in your cash flow
- Keep control – You are the owner of the asset for tax purposes and can normally claim capital allowances
- Tax efficient – You can offset your hire purchase interest and charges against pre-tax profits
- Reclaim VAT on the capital cost (there are special rules for cars)