Hire Purchase

  • Hire Purchase is a type of loan that gives the benefits of owning the asset whilst spreading the cost over a fixed period.
  • After paying the VAT and the deposit upfront you will pay regular instalments comprising of the capital and the interest.
  • At the end of the agreement you have total ownership of the asset.
  • It is possible to negotiate a VAT deferral with the lender to further support cash flow.
  • Seasonal payments can also be negotiated where appropriate.


  • Supports cash flow by spreading the cost over several years.
  • The asset is shown on your balance sheet.
  • VAT can be reclaimed in full.
  • The interest charges are allowable against tax.
  • Tax writing down allowances are available.
  • Helps with budgeting for both cash flow and growth projects.