Hire Purchase

If you wish to buy equipment or Machinery outright, hire purchase provides a flexible and cost effective alternative to bank loan or overdraft funding.

Hire Purchase (or lease purchase, as it is also known) can give you the best of both worlds. You get the asset straight away but you can spread the payments over the life of the asset, and you can keep it at the end of the term for a nominal fee.

• With Hire Purchase we can finance up to 100% of the purchase price**, with the option to defer the VAT payment
• Payment structure agreed at the outset for easy budgeting
• With Hire Purchase you can buy the asset for a nominal fee at the end of the term
• Repayments can be matched to your cashflow and the depreciation of the asset.

How Hire Purchase works

Hire Purchase is a way to buy the assets you need without depleting your cash reserves. Hire Purchase is flexible and tax efficient and can be used to buy anything from IT to plant and machinery. Hire Purchase also gives you ownership title, making it suitable if you want to purchase something you want to keep or eventually sell.

There is usually no need for additional security as the finance is secured on the asset. Also, Hire Purchase is a tax-efficient way to buy assets as the interest on the payments is tax deductible and capital allowances on the equipment can be claimed immediately.