Hire Purchase is a popular form of Asset Finance used regularly by businesses to purchase a wide range of items including Vehicles, Plant and Machinery.

Typically a deposit is paid at the beginning of the agreement then the balance spread over a fixed period, anything from 12 to 60 months.  Hire Purchase interest can be fixed or variable, depending upon the size of the advance and your specific circumstances.

Title to the goods passes to the hirer when the final payment is made making it ideal for businesses that want to keep it simple and ultimately own the goods at the end of the agreement.

From a tax perspective Hire Purchase is good news.  The capital cost of any qualifying assets will attract writing down allowances or be offset against the annual investment allowance and the interest element of the loan will also be allowable as a business expense.

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