Hire purchase provides businesses with a flexible finance solution to purchase an asset whilst freeing up cash flow by spreading the capital costs over an agreed timescale. It allows the business to a hire an asset over the  course of the term, through agreed monthly instalments with the option to purchase and own the asset outright at the end of the agreement.

Benefits and Features

• Length of term typically ranges from 12-84 months.
• Monthly instalments tailored to suit your business requirements. This can be achieved via length of terms seasonal payments (particularly if your business has seasonal fluctuations in your cash flow) and balloon payments at the end of the agreement. 
• Tax. You can use the interest on your hire purchase agreements to deduct from pre-tax profits. The asset will sit on your balance sheet so you will likely be able to claim capital allowances.