Lease Purchase

  • Lease Purchase is essentially a Hire Purchase agreement with a final lump sum (‘balloon payment’) at the end of the agreement.
  • This has the effect of leaving a percentage of the amount borrowed unpaid until the end of the agreement.
  • The balloon payment is determined by the estimated market value of the asset at the end of the agreement.


  • Lower monthly payments.
  • 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