Hire Purchase

If a business wishes to buy equipment outright, then Hire Purchase can provide a flexible and cost effective alternative to a bank loan or overdraft funding.

Hire Purchase (or lease purchase, as it's also known) can provide the best of both worlds - not only will your business benefit from using the equipment straight away but the payments can be spread over the life of the equipment.  At the end of the lease term title of the equipment can passed for a nominal fee.

  • Financing for up to 100% of the purchase price
  • Payment structure agreed at the outset for easy budgeting
  • The equipment can be purchased for a nominal fee at the end of the term (option to purchase fee)
  • Repayments can be matched to your cash-flow and the depreciation of the equipment.
  • Repayments can be linked to fixed or variable rate interest

How Hire Purchase works

Hire Purchase is a way to buy the equipment that your business needs without depleting your cash reserves.  Hire Purchase is flexible, it can be tax efficient and it can be used to buy anything from IT equipment to heavy plant and machinery. Hire Purchase also gives you the option of ownership title at expiry, making it suitable if your business wants to invest in assets that you want to use for the long term and keep, or eventually sell.

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

Hire Purchase is suitable for any equipment your business wishes to own, and that may have a useful life beyond the finance agreement term. For example: printing presses, construction equipment, materials handling machinery, commercial vehicles and agricultural equipment.