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Lease Purchase/Hire Purchase

Lease purchase, Hire purchase, Manchester, Birmingham, LondonLease Purchase, (also known as deferred purchase, hire purchase, purchase plan, or simply, HP) a popular and traditional equipment finance method where payments of capital and interest are paid over the agreement term. Capital allowances are allowed on full cost of purchase, commencing in the accounting period when equipment is acquired. VAT on full equipment price is payable (and reclaimed) at the outset

Lease Purchase agreement offers you the opportunity to own the asset at the end of the period. The agreement is secured on the asset being financed, so in the majority of cases, no additional security is required. In line with our flexible approach, repayments can be tailored to match your business needs - so you know exactly what you have to pay and when, allowing you to plan ahead and retain control. A Lease Purchase agreement usually enables you to claim Writing down Allowances.

Lease Purchase is suitable for all types of assets and is of particular benefit if the equipment being purchase has a life expectancy greater than the term of the asset. You select the supplier and the equipment you want. We agree with you a repayment plan for the equipment – usually between 1 and 5 years (and for certain long life assets, up to 7 years, upon request). The supplier delivers the equipment to you and we pay the supplier. You have direct and immediate ownership of the equipment including all the VAT applicable to the cost price. At the end of the repayment period, upon receipt of an option to purchase fee, the equipment is yours. Lease Purchase helps by spreading the cost of expensive items over an extended time period. All interest costs are off set against tax as they are paid and you claim Tax Write Down allowances.

 

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