When it comes to funding options for businesses, asset finance
Business financing simplified
in a nutshell
Hire purchase is a way to finance buying a new or used asset. Hire purchase allows you to buy an asset and pay off the value of the asset in monthly instalments, with the loan secured against the asset. While you are still making payments, during the term, you are hiring the asset and as such, you do not own the asset until the entire repayment is made. Because you do not own the asset, you are not allowed to sell or dispose of the goods without the lender’s permission.
In most cases the lender will require an initial deposit – typically 10% of the purchase price and then a monthly instalment paid over 1-5 years and then a final purchase price..Since the finance is secured against an asset the interest rate is typically better than that of an unsecured loan.
It is a great way to access an asset in your business and by spreading the cost over time it is easier to budget for.