Leasing Info & Help
Hire Purchase
The traditional yet popular form of funding.
Hire Purchase enable companies to fund the outright purchase of equipment. Business users can claim capital allowances against the value of the equipment allowing most of the tax benefits to be claimed quickly. In subsequent years the interest relief is set against tax and the goods are gradually depreciated. With this in mind, hire purchase offers a highly tax efficient way of funding all forms of assets, especially those that have a longer life span.
Cash flow management with fixed rates
Technically, you are not the owner of the equipment during the period of hire purchsae as you are effectively
borrowing money against the asset. Fixed repayments help to enable accurate budgetary and financial controls while loan and security
are both on one document, making the agreement easier to administer. Because you end up owning the equipment at the end of the
agreement, hire purchase has more in common with a loan than with leasing and, as such, is suitable for any items that
you will want to own long term.
