If a business wishes to buy equipment outright, then Hire Purchase can provide a tailored and cost-effective alternative to loan or overdraft funding.
It enables your business to benefit from using the equipment straight away while repaying the asset on terms agreed at outset which suit your requirements. At the end of the term agreement, ownership of the equipment is normally obtained for a nominal fee.
- Payment terms available up to 84 months
- Various deposit options available
- VAT Payable upfront but we can facilitate deferrals between 1-3 months if required
- Final balloon payment can be included where beneficial to help the repayments
- You own the asset at the end of the term. An option to purchase fee will be included on the final payment.
- On balance sheet funding
Benefits of Hire Purchase
- Efficiency - Uninterrupted use of the asset
- Choice - Give your business a cash injection or use the money to buy other assets that may not be accessible through hire purchase or leasing agreements
- Make fast decisions - Releasing capital can help you make faster decisions when negotiating business contracts
Hints and Tips
Before submitting an application for funding, here are some useful tips about what finance companies like to see:
- Recent management accounts
- Last 3 months bank statements
Funders will consider applications where a company has a history of:
- Adverse credit issues
- Bad debts