Hire Purchase Finance
Experience immediate asset acquisition with Universal Finance Corporation
Acquiring essential assets for your business can be a significant financial burden, but it doesn't have to be. At Universal Finance, we can help you find hire purchase finance solutions that enable you to obtain the equipment you need without the immediate strain on your cash flow.
Invest in your business with the help of the talented team at
Universal Finance. Get in touch with us today to discuss your asset acquisition goals.
What is hire purchase finance?
Hire purchase finance is a method of acquiring assets through a financial agreement with a lender. Following an initial deposit, you continue to make regular instalments over a specified period. Unlike leasing, where you only have the right to use the asset, hire purchase finance allows you to own the asset outright once the final payment is made.
Put simply, hire purchase finance means being able to access essential assets when you need them without the pressure of a large lump sum payment. Aside from cash flow flexibility, hire purchase finance promises the following benefits:
- Fixed monthly payments — The structured repayment schedule with fixed monthly payments makes it easier to budget and manage cash flow. You know exactly what your financial commitments are each month and can avoid costly surprises.
- Tax benefits — Businesses can often claim tax deductions on the interest component of the payments and the asset's depreciation, providing potential tax savings.
- Ownership — Hire purchase agreements culminate in full ownership of the asset. Once all payments are made, the asset becomes a permanent part of your business's inventory.
Stress-free financing — get to know our brokerage services
Whether you work in the manufacturing or hospitality industry, our
mortgage brokers can match you with the best financial solution for your needs. We understand that no two businesses are the same, which is why we work with a wide pool of lenders to ensure our clients receive the most flexible solution.
During our initial consultation, our brokers will get to know your business and what kind of hire purchase finance you’re looking for. With this information, we’ll get to work comparing options that best suit your preferences before presenting you with our top selection.
Our streamlined application process is designed to be quick and efficient. We assist you with the necessary documentation and handle communications with lenders, ensuring you can access the funds and assets you need without unnecessary delays.
Connect with Universal Finance Corporation today
Invest in the future of your business with Universal Finance.
Contact us today to find out whether hire purchase finance is a viable option for your business.
FAQs
What is hire purchase finance?
Hire purchase finance involves acquiring assets, such as vehicles or equipment, by making an initial payment followed by regular instalments. The asset is leased to the buyer, who gains ownership after the final payment. This arrangement allows businesses to use essential assets immediately while spreading the cost over time, improving cash flow management.
What are the benefits of hire purchase finance?
Using hire purchase as a source of finance for assets can bring many benefits for business owners. The biggest advantage of this financing source is having immediate access to essential assets without paying the full purchase price upfront. This is ideal for businesses that may have encountered an unexpected challenge that must be resolved immediately.
By spreading the cost over time with a fixed rate, many businesses also find that hire purchase finance provides greater flexibility and control over their cash flow.
What is the difference between hire purchase finance and leasing?
The key difference between hire purchase finance and leasing is ownership. In hire purchase, the buyer makes payments over time and gains ownership of the asset after the final instalment. In leasing, the lessee pays to use the asset for a specified period without gaining ownership. Leasing often involves lower monthly payments, but the asset must be returned or bought at the lease's end.
Can I settle a hire purchase agreement early?
Yes, you can settle a hire purchase agreement early. Doing so may involve paying the remaining balance and any early settlement fees. Early settlement can save on interest costs, but it's important to review the terms of your agreement to understand any penalties or additional charges. To find out what this might look like for your business, check out our hire purchase finance calculator.