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.
It 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