Acquisition finance in brief
Your company will become the owner when you've made the last payment
The Finnish hire-purchase act governs the use of acquisition finance. The financier has the right of reservation of ownership to the financed asset throughout the financing period, but your company can post depreciations in bookkeeping as usual.
The interest on a hire purchase installment is a tax-deductible expense, and you can deduct VAT from the entire purchase price right away. Your company will automatically become the owner of the asset when you have made the last payment.
- The self-financing share may include both down payment and trade-ins
- Maximum financing period is 5 years
- You can repay as an annuity or in equal installments
- The asset must be delivered acceptably before payment to the seller
- The asset must be insured
- You can pay off the entire amount mid-term without any extra costs.