Hire Purchase is a smart choice if you want to own a truck through regular repayments without investing all of you capital at once.
The truck will appear as an asset on your balance sheet and after the final repayment, you become the owner.
Hire Purchase Fixed Rate
This allows you to purchase a truck with regular payments that remain constant throughout.
The benefits:
- Pay monthly or quarterly
- Payments and payment term fixed at start of agreement
- No extra costs if interest rates rise
- Interest may be allowable against taxable profits
- Capital allowances claimable
- Truck shown as an asset on balance sheet
Hire purchase fixed rate is ideal if you need to stick to an exact budget when interest rates vary - you'll always know how much you need to pay. Your payments can be timed to fit with the cash flow of your business, and after the final instalment, provided you meet the terms and conditions of your agreement, the truck becomes yours.
Hire Purchase With Balloon
This is a safe, low-risk option as you make lower monthly payments on a truck plus a final balloon payment.
The benefits:
- Lower monthly outgoings help keep your overheads down
- If interest rates rise, there's no extra cost to you
- Interest may be allowable against taxable profits
- Capital allowances claimable
- Truck shown as an asset on balance sheet
Hire purchase with balloon is flexible too. At the end of the agreement, provided you've met the terms and conditions of your agreement, you can either:
- Make a final lump sum (balloon) payment and keep the truck
- Re-finance the balloon and continue making your payments
Hire Purchase Variable Rate
This allows you to make regular payments that alter with interest rates, so you could save money.
The benefits:
- Interest is calculated daily
- Pay monthly or quarterly
- Doesn't tie up all your capital in one go
- Pay less when interest rates fall
- Interest may be allowable against taxable profits
- Capital allowances claimable
- Truck shown as asset on balance sheet
Hire purchase variable rate is a smart choice if you think interest rates will fall.
There are no additional charges if you want to settle the agreement early or pay off a lump sum, provided you've met the terms and conditions of your agreement. once you make that final payment, the truck is yours.