What is hire purchase?
Financing your company’s investments with hire purchase ensures monthly payments that suit your budget. Hire purchase agreements can be made for both new and used assets. The financed asset itself serves as security so there is no need for separate security. After the agreement period has expired, the ownership of the asset will be transferred to your company.
Depending on your company’s finances and investment needs, hire purchase may just be the right solution for you.
The asset acquired with hire purchase is entered in the company’ balance sheet and the interest is tax-deductible. In some cases, hire purchase can be a significantly more cost-effective way to finance an investment compared to leasing financing or a loan, for instance.
