What is Hire Purchase?
A business Hire Purchase is a fantastic way for businesses to purchase essential Assets and equipment without using up cash reserves. It remains a popular option for many. It provides a range of options for structuring your required terms and is mostly associated (not always!) with the financing of hard assets such as Plant equipment, Machinery and vehicles.
Typically the VAT element is be paid in advance (although deferment can be an option) and this is followed by monthly payments for a fixed period of time. At the end of the hire purchase agreement you can then become the legal owner of the asset through a small option to purchase fee.
