You can use Hire Purchase (HP) to acquire business assets over a period of time. As such it is the oldest form of financial purchase agreement. In an HP contract the ownership of the asset (title) remains with the HP Company. Only on completion of payments does ownership transfer to you/the business.
Hire Purchase Agreement
HP is a sensible option for you where payment in full is not suitable and cheaper forms of credit are not available. An HP agreement to acquire assets is usually better thana leasing agreement for the Balance Sheet. Goods being acquired under an HP agreement can be shown as assets on the balance sheet. There may also be a marginal advantage as far as taxation is concerned, Talk to your accountant about this.
BFS can help you to find the most suitable provider of HP terms for your business. Just call us on 0800 093 5240 for a free consultation of e-mail email@example.com.