Hire purchase is a straightforward repayment facility which provides outright ownership at the end of the agreement. Repayments can be fixed and structured in a flexible way to mirror project costs or match cash flows through, for example, an escalating profile or with a balloon or lump sum payment at the end of the term.
Key Features & Benefits
- Preserves cash flow – offering the benefit of paying in installments over a fixed period.
- Tax efficiency – interest payments can be offset against profit and the business can claim writing down allowances.
- Flexible – all elements of the transaction, deposit, period and repayment, can be flexed to suit your specific requirements.
- Choice of using fixed or variable rates.