Hire Purchase
This is the most typical and readily available credit facility.
In basic terms, you source the asset and negotiate the purchase price with the supplier. You pay a deposit to the finance company, typically 10-20%, and the finance company then takes title direct from the supplier.
Even though you are technically not the owner of the asset during the agreement, subject to eligibility you can still claim the writing down allowances as though you had made the purchase outright.
At inception you would usually be required to pay a documentation (or administration, arrangement) fee of £100-250 and the full purchase VAT. You will then, subject to eligibility, recover the VAT yourself. You repay the outstanding amount and interest in pre-agreed instalments over the period of the agreement.
At the end of the agreement you obtain title through the payment of an 'Option to Purchase Fee'. This fee is often a token gesture to transfer title, but some finance companies do still charge a significant fee of £10-150. Hire Purchase agreements can be based on a fixed or variable rate, and the monthly commitment can be reduced by the inclusion of a balloon.
© 2012 : Sterling Capital Reserve Ltd
Sterling Capital Reserve Ltd
Sterling House, 10 Wheatcroft Business Park, Landmere Lane, Edwalton, Nottingham NG12 4DG
Tel: 0115 984 9800 Fax: 0115 921 5550
Map and Directions to our Office
ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
EARLY REPAYMENT CHARGES APPLY. A BROKER FEE MAY APPLY.
Web Design Nottingham by Whatever Enterprises