For certain types of asset financing requirements Hire Purchase offers a straightforward way to spread the costs. With this type of asset finance plan you pay a fixed rate of interest and benefit from agreed monthly payments, making budgeting simple and easy.
You choose the amount of deposit you wish to pay, typically between 5%-50% of the purchase price. The remainder of the balance, together with the interest, is repaid over an agreed period (12-60 months).
Funding Assets via Finance Lease
If your business needs to acquire new capital equipment or new machinery, then a Finance Lease maybe an option.
With Finance Lease the equipment is hired to you by the finance company and remains the property of the finance company at all times. Monthly payments and interest rates are fixed for the duration of the contract. VAT is payable on the monthly rentals rather than in full at the outset of the contract.
Finance Leasing can be the preferred option for Partnerships, Limited Companies & Sole Traders due to the significant tax advantages.
