Are you looking to buy your next asset on a hire purchase (HP) agreement?
Hire purchase by definition is a method of paying for something in which the buyer pays part of the cost immediately and then makes small regular payments until the debt is completely paid.
This process allows your business to purchase the equipment that it needs, without a large initially outlay that would have a negative impact on the cash flow.
Your business would have full control of the asset during the hire purchase agreement, whilst the fixed monthly payments would cover the outstanding balance, interest and asset depreciation.
With a small deposit, you would be able to spread the remainder of the balance over a fixed period, at a fixed rate. This allows for easy budgeting as the monthly amount will be fixed over the term.
Once the final payment is made, ownership of the asset transfer to your business. Common industries that use this type of agreement tend to be manufacturing, construction, agriculture and farming, transport and logistics, engineering and professional services such as dentists or private medical centres.
Due to the nature of these industries, the equipment that they require tends to be expensive and it is more beneficial to use hire purchase agreements to obtain that equipment.
We have various funders who can offer hire purchase agreements, all cover hard assets and a few niche funders who will consider soft assets.