Hire Purchase

Also read: Lease Purchase | Finance Lease | Operating Lease | Raising Capital

This is the most typical credit facility and is readily available. Basically you source the asset and negotiate a purchase price with a supplier.

You then pay a deposit to the finance company which would be between 10%-20% the finance company can then take the title direct from the supplier.

But though you are not technically the owner of the asset during this agreement, if eligible you may still claim the writing down allowances as if you had made the purchase outright.

Initially you would have to pay a documentation fee (or administration arrangement) which would amount to a fee of £100- £250 plus the full purchase VAT. You can depending on eligilibty recover the VAT yourself. You can then repay the outstanding amounts and any interest in agreed installments over a period of time.

You can obtain the title through the payment of an Option to Purchase Fee at the end of your agreement. The fee can be a token gesture to transfer titles, but some finance companies will charge a fee of £10- £150. Hire purchase agreements may be based on fixed or variable rates and the monthly payment could be reduced by the inclusion of a balloon.

Whats your next step:

You can either use our online enquiry form or
contact us direct for immediate human contact on 0800 0735353.
You are under no obligation and you pay no fees until the commercial finance product is arranged.