Hire Purchase / Lease Purchase
A straightforward repayment facility where you ultimately own the asset. Repayments can be structured in a flexible way using initial payments and/or a 'balloon' (final lump sum).
- Periods from 1-7 years
- Fixed and variable rate (Variable is great for directors cars as there is minimal penalty for early settlement)
- Rentals can be set according to your cash flow - especially beneficial if your business is seasonal.
- you control the asset, and are responsible for its maintenance
- Company deals with the asset as if they had paid cash, and it appears on your balance sheet
- The interest element of repayments can normally be offset against taxable profit.
