Hire Purchase is the traditional way of financing an asset.
The Customer enters into an agreement to buy the asset over a period of time. When the final payment is made you have full ownership to the asset and in the interim you have full right of use of the equipment and put the asset on your balance sheet.
With Hire Purchase agreements many funders will give a 3 month or 4 month VAT deferment. This means you pay the VAT to the funder in order to get it back from HMRC.
If you want to find out if Hire Purchase is the right solution to help your business grow, give us a call on 01403 258934 or email us.