Business Hire Purchase (HP)

Applicable to Sole Traders / Partnerships and Limited Companies

Key Features

• Vehicle appears on your balance sheet
• Ownership of the vehicle once the contract is complete
• Frees up cash to invest in other areas

About Hire Purchase

Hire Purchase is a conventional funding facility that has been "outshone" in some respects by more recent products such as Contract Purchase or Personal Contract Purchase. Nevertheless, traditional Hire Purchase still has a number of strong advantages for some customers.

Hire Purchase is ideal for non-VAT registered sole traders/ partnerships/ limited companies that require ownership of the vehicle at the end of the contract. Operating your vehicle through a Hire Purchase rather than purchasing outright means that you save valuable cash which you can then invest in other areas.

As Hire Purchase is a purely funding product, maintenance and other such services are not part of a Hire Purchase agreement.

Should the contract be for a LCV (light commercial vehicle), then the full amount for the VAT on the purchase must be paid upfront. This is a reclaimable payment providing you are a VAT registered business.

Additional Features

• Writing down allowances can be claimed against the vehicle which will appear on the your 'Balance Sheet'
• Road Fund Licence is provided for the first 12 months of the contract, after that we will continue to organise the RFL for you and then recharge this.

Things To Remember

• You will own the vehicle once the final payment has been paid. You must have a fully comprehensive vehicle insurance.

For more information about the benefits and suitability of Lease Purchase for your business we recommend that you speak to us.

Professional Vehicle Solutions Ltd is Authorised and Regulated by the Financial Conduct Authority under FRN 660146 and is a Credit Broker not a Lender.