Hire purchase

Hire purchase (HP) is an agreement to hire an asset with an option to purchase at the end of the repayment term.

It is designed to give each client full use of the new asset with a repayment plan that suits their budget, and has the big advantage of avoiding any large initial capital outlay.

Our flexible approach to hire purchase can also allow for any seasonality in business contracts. For example, if the business is quiet over the summer months, the repayment plan can be tailored to reflect this.

Features & Benefits

1. Negligible capital outlay at the outset

2. No need to pay VAT on repayments

3. Business can still enjoy capital allowances

4. The business eventually owns the asset if required

5. Easy to budget fixed monthly payments

6. Offset interest charges against profits