Hire Purchase
Hire purchase enables you to eventually secure ownership of the
new asset. The cost can be spread over its useful life and paid for
from revenue. Payment patterns can be tailored to suit individual
needs, generally involving a deposit, followed by a series of
monthly or quarterly instalments.
Hire purchase is suitable for individuals and businesses of all
sizes. Funding is on balance sheet and you have a choice of fixed
or variable interest rate agreements.
Key features and benefits of hire purchase
- Up to 100% finance of the purchase price can be agreed with the
option to defer the VAT payment
- Option to buy the asset for a nominal fee at the end of the
term
- Payment structure agreed at the outset for easy budgeting
- Repayments can be matched to your cash flow and the
depreciation of the asset
- Unlike some bank loans, additional security is not usually
required and a hire purchase agreement is not payable on demand if
conditions are being met
- You can claim immediate capital allowances on the
equipment
- The interest element of the payments is tax deductible
- VAT is immediately recoverable on the whole purchase price
(except in the case of cars)
To see how working with Halo can benefit your business call 0845
450 1966.
Please contact
us for more details