Finance Options - Hire Purchase

FINANCE OPTIONS Hire Purchase What is it? Allows customers ownership from Day 1 for tax and accounting purposes. Goods are invoiced to the Bank/Finance Company and the customer normally pays fixed instalments over an agreed period of 2-5 years. At the end of the agreement full title passes to the customer. The VAT is normally paid on signing the agreement. Benefits · You can claim ownership allowance (WDA) as a charge against tax liability. · Fixed repayments enable accurate budgetary and financial control. · Economic ownership can help maintain Balance Sheet value. · Particularly effective with second hand or long life equipment. · Documentation and arrangements with suppliers are relatively simple.