Need to purchase an asset, but don’t have the money to buy it upfront? Take out a hire purchase agreement to receive the asset now and pay for it in affordable instalments.
Hire purchase is a popular type of asset finance popularly used by businesses to buy vehicles, machinery and equipment.
Whilst you are still paying for the asset, the creditor is the legal owner, but once you’ve finished your payment plan it’s all yours.
Here are just a few of the benefits of buying an asset using a hire purchase agreement:
No need to pay a large sum of money upfront– Whilst you may be required to put down a small deposit, the cost will be nothing like paying for the asset upfront. This is particularly useful if it’s a large and unexpected cost, like a vehicle or key piece of machinery breaks down.
Flexible and affordable payments– Hire purchase allows you to spread the cost of the asset over a set period, so you’re paying off a small, affordable sum each month.
Protect your cashflow – Spreading the cost helps you to look after your business’ cashflow. Healthy cashflow is essential for developing and growing your business.
Own the item at the end of the payment plan – At the end of the payment plan, the asset is yours to keep!
Immediate use of the item – You can start using the asset immediately, meaning no expensive downtime whilst you save up the funds.
High quality asset– Many businesses find that they are able to afford vehicles and equipment of a much higher quality and specification through hire purchase than they would have if they were paying upfront.
Fixed interest rates– Hire purchase interest rates are fixed, meaning no uncertainty on costs, helping you to keep your cashflow stable.
No VAT on monthly repayments– VAT is paid upfront by you along with any deposit required. You will then re-claim the VAT in your regular payments.
For more information about our hire purchase agreements, or to discuss your requirements in more detail, give our team here at Richmond Asset Finance a call on 0113 288 3277.