Hire Purchase

Regular monthly payments and a choice to own the asset

 Security may be required. Product fees may apply. Finance is only available for business purposes.

 

What is Hire Purchase?

You can spread the purchase cost of an asset, like a company car or business equipment, over a longer period with fixed regular payments. It can be fixed to suit your business and we offer flexibility on deposit, regular monthly payments and the final lump sum (or balloon payment).

 

Applying for Hire Purchase

  1. Instant credit decision

  2. Get a personalised quote

  3. Flexible deposit

  4. Tailored monthly repayment plan with security of fixed monthly repayments

 

Conditional sale - explained

Unlike a Hire Purchase where you have the option to buy the asset, under a Conditional Sale you commit to owning the asset at the end of the agreement. This will happen automatically once you have made all your payments.

Dependent on your circumstances and borrowing requirements, we may offer you a Conditional Sale agreement.

Why choose the hire purchase option?

  • Flexible repayments

    You can choose to reduce the monthly payments by increasing the deposit or final payment - known as a ‘balloon payment’.

  • Your in control

    You may be able to offset the interest charges against trading profit and you have the option of owning the asset at the end.

  • Choice of interest rates

    We offer a choice between fixed or variable interest rates so you can pick whichever option suits your circumstances.

Hire Purchase vs Leasing?

When deciding what is right for you, it’s key to know the basic difference between Hire Purchase and leasing. They are both good ways of financing assets like vehicles.

Leasing is a method of financing that allows you to use an asset over an agreed term and return it at the end. With Contract Hire there is a residual value placed on the vehicle which reduces the lease rental payments. Not having to dispose of the assets at the end of the agreement can be more convenient.

 

Hire Purchase is a flexible way of financing an asset with the option of keeping the asset at the end of the term. Once you’ve made the last payment, you can become the owner of the asset.