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Hire Purchase
Hire Purchase (HP) allows your business to spread the cost of acquiring an asset over a set period, offering flexibility by avoiding the need to pay the full amount in advance, thereby preserving your business’s cash flow.
HP agreements generally range from 2 to 5 years, with a deposit agreed upon before the contract begins. Ownership of the asset is transferred to the customer once all payments have been made. Unlike other types of finance, VAT is paid at the start of the agreement rather than on each monthly instalment.
These agreements are particularly popular for companies investing in assets they plan to retain long-term, such as commercial vehicles or excavators, which have long economic lives and tend to hold their value.
Finance Lease
A Finance Lease provides a business with the ability to use an asset without needing to purchase it upfront. In this arrangement, the lender purchases the asset and leases it to the business, which makes regular monthly, quarterly, or seasonal rental payments over an agreed period, typically 3, 4, or 5 years.
This option offers flexibility since the business doesn't own the asset. At the end of the agreement, the business can typically either return the asset to the lender if its remaining economic life is short, sell the asset on behalf of the lender and share in the profits, or continue using the asset for a nominal rental fee agreed with the lender.
VAT is applied to the rental payments instead of the full purchase price, potentially helping to reduce your taxable profit. Finance leases are popular for assets that are heavily used and replaced within a set timeframe, such as warehouse forklifts.
Personal Contract Purchase
Personal Contract Purchase (PCP) is a popular finance option for individuals looking to purchase personal vehicles. It offers lower monthly payments compared to hire purchase, as a balloon payment is built into the end of the agreement, which reduces the regular instalments.
PCP provides additional flexibility, as at the end of the agreement term the customer has several options. They can choose to pay off or refinance the balloon payment to keep the vehicle, trade it in for a new one and start a new agreement, or return the vehicle to the finance company if its value is less than the balloon amount due.
The final balloon payment is based on the length of the agreement and the vehicle's expected mileage per year. PCP is available for both new and used vehicles, giving users the flexibility to choose according to their needs.
Business Loans
Access to capital is essential for businesses aiming to grow and achieve their goals. Whether it’s funding a new project or acquiring assets that can't be financed through traditional methods, business loans provide a flexible solution for companies in need of capital.
Loans from commercial lenders offer several advantages, including rapid access to funds, flexibility in how the funds are used, and the ability to cater to a wider range of customers compared to traditional banks.
Many of the lenders we work with can process loans of up to £250K in under 48 hours, ensuring that your business can put the funds to work as quickly as possible.
Would you like to discuss a specific service we offer?
If you'd like to discuss an upcoming purchase, please get in touch with us. We can provide tailored illustrations of the different financing options available and explain how they can best suit your situation, ensuring you achieve the best possible outcome for your goals.
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