What is hire purchase?
A hire purchase agreement gives a business access to new assets without the cash flow impact of buying them outright. An initial instalment is paid, and the remainder of the purchase cost is broken into manageable and regular monthly instalments. Full payment of the asset is split out over a period of up to 72 months.
Why choose hire purchase over other types of asset finance? At the end of the hire purchase agreement, you own the asset. This is beneficial for businesses looking to increase their portfolio of assets, while not eating too much into cash reserves.
Who is suitable for hire purchase?
We have organised hire purchase agreements for gyms, printing companies, and many more. Any business that needs vehicles, equipment, or machinery could benefit from this type of funding.
As the asset is its own security, hire purchase is a good solution for businesses with a short trading history or less than ideal credit rating. The value of the asset will be primarily considered when we are making our funding decision.
There are tax implications for hire purchase agreements too, making them appealing for any business. You can write off the depreciation of the asset against taxable profits, and claim tax relief on the interest. Further to this, with a hire purchase from Access Commercial Finance you can enjoy:
Immediate access to new assets
Fixed interest rate and no hidden fees
Funding decisions within 24 hours
Repayment terms from 12-72 months
Easy monthly repayments
Applications accepted from any industry