HIRE & LEASE PURCHASE
Hire Purchase is a well-established method of financing for companies that wish eventually to take ownership of business assets.
The finance company buys the asset on behalf of the customer, who then pays an initial deposit. The remaining balance, plus interest, is then paid over an agreed period. During this period, ownership rests with the finance company, who is effectively hiring use of the asset to the customer.
Repayments can be fixed and structured in a flexible way i.e. a balloon or final lump sum can be applied to reduce the monthly repayment.
Once the final payment is made, ownership transfers to the customer.
Key Features and Benefits
Preserves cashflow – offers the obvious cashflow benefits of paying in instalments.
Tax efficiency – as a business can claim writing down allowances and can offset interest payments against taxable profits.
Flexible – we can tailor deposits, periods and repayments to suit your specific personal or business requirements.