Our Hire Purchase solutions are ideal for all sizes of businesses that are keen to purchase assets such as IT, vehicles and other equipment, but want to spread the payments over time.
With a Finance Lease you pay monthly rental plus VAT to the lender - meaning that you pay for the equipment as you use it and pay reclaimable VAT in small amounts as you pay rentals over the economic life of the Asset. You do not have to pay the whole sum of VAT applicable up front. The rentals are reclaimable as an expense against revenue in your accounts.
What's the Process when setting up a Hire Purchase Agreement?
- Reality Finance will compare finance for you with the best rates possible for the type of equipment being financed.
- Once the funding is approved we then prepare paperwork, bring it to you for signature.
- We arrange invoicing with your chosen supplier.
- We process the paperwork* send it to the lender and arrange for the supplier to be paid.
- You commence paying rentals, typically ten to fourteen days after the lender receives the paperwork and pays the supplier.
Why Reality Finance?
We make Hire Purchase flexible, with payment plans designed around your business and cash flow. Choose from different deposit and rental options, select fixed or variable interest rates. Plus, we’ll provide you with a rapid decision and turnaround to help you get things moving, fast.
Why Hire Purchase?
- Own the asset, pay over time: obtain essential equipment without paying upfront
- Preserve your capital and cash flow: leave capital free and optimise your cash flow
- Tailor your terms: match your payment term to your needs, and your repayments to your cash flow and asset depreciation
- Choose to buy: choose to purchase the asset if you wish, with a one-off payment at the end of the term
- Lower your tax bill: enjoy tax-deductible repayment interest, claimable capital allowances on equipment, and immediately recoverable VAT on the full purchase price (except for cars)
Hire Purchase can fund...
- New and used vehicles
- Office equipment
- Construction machinery
- Manufacturing and engineering plant