Hire Purchase and Re- Finance

A straightforward repayment facility also known as LEASE PURCHASE providing outright ownership at the end of the agreement.

Hire Purchase can be 100% finance or more normally with an optional deposit of around 10% of the cost of the goods, full VAT is also paid upfront with the deposit.

Repayments can be FIXED or VARIABLE and structured in a flexible way ie. Balloon or final lump sum can be applied to reduce the monthly payment.

We offer Hire Purchase for all new & used vehicles and equipment in addition we will look at RE-FINANCE of any owned equipment or vehicles

FIXED RATE

Fixed Rate Hire Purchase the monthly repayments are made up of capital and fixed rate of interest.

This may be repaid by monthly or quarterly rentals and they are fixed for the full period of the agreement.

We can also look at designing different Fixed FINANCE SOLUTIONS to match the business needs such as Holiday Payments, Pauses and Low Deposits depending on the income and expenditure cycle of your business.

VARIABLE RATE

Also known as Balanced Payment Plan is a variable rate Hire Purchase agreement with the benefit of fixed monthly payments.

Interest is calculated daily at an agreed percentage over Finance House Base Rate (FHBR), and is repayable monthly or quarterly.

When the base rate fluctuates , only the number of payments varies but the amount of payment says the same, thus helping your monthly budgets and cash flow administration.

It is also possible to settle the entire agreement early and only pay the interest up to the date of the settlement. Lump sums can also be paid off and further reduce the overall interest charges.

HIRE PURCHASE BENEFITS

  • Offers the obvious cash flow benefits of paying in instalments with all the benefits of ownership
  • Interest rate fixed at time of signing for budgeting and cash flow
  • Tax efficiency as a business can claim writing down allowances
  • Vat fully reclaimable
  • Flexibility of tailor made deposits, periods and repayments to suit you specific business needs

VARIABLE RATE BENEFITS

  • When the base rate fluctuates, only the number of repayments varies the amount says the same
  • Savings when the interest rate falls
  • Savings on costs when settling early
  • Additional capital may be paid off to reduce interest

Please CONTACT US for all details of Hire Purchase rates and FINANCE SOLUTIONS.