Valmistusprosessin koneen osa.

Hire-purchase financing

Finance for investment in your company's moveable capital assets.

The most common assets in hire purchase financing include manufacturing machines and equipment, transport equipment, working machines, agricultural and forest machines as well as cars and other vehicles. Your company can use hire purchase to finance the purchase of both new and used assets.

Benefits for your company:

  • The main collateral is the asset to be financed, in which case your company can save real collateral for other purposes.
  • For accounting purposes, your company receives title to the asset, i.e. as a rule of thumb you can deduct the asset's value added tax included in the asset's price in the VAT calculation.
  • You can perform standard depreciation on the asset. For accounting purposes, depreciated assets and paid interest represent your company's deductible expenses.
  • Your company can make us of the cashpaying customer's benefits.

Getting a hire purchase deal is easy. You only need to decide on the fixed asset and agree on the terms of the purchase with the seller. Financing is simple because we cooperate with all major importers, distributors and manufacturers.

Below you can find more detailed instructions on how to apply for hire purchase financing.

When your company needs to purchase machinery or equipment, hire purchase financing facilitates procurement and cash management and does not tie other collateral as the financed asset serves as collateral for the credit.
Jukka Kajander‚ Finance Director, OP

We have made the application for hire purchase financing as easy as possible for your company.

In need of financing, do the following:

1) Choose the asset and agree on the terms of purchase with the seller.

2) Ask the seller to fill in a financing application. If the asset involved is other than a car, you can directly contact OP.

3) After you have received approval, sign the contract documents.

4) The seller will send the agreement to OP after which we will pay the bill or the portion to be financed to the seller.

5) You will receive the bill by post once we have financed the agreement. You can also adopt e-invoicing.

You can easily conclude a hire purchase agreement when visiting a car dealer.  Hire purchase is suited to the purchase of new and used passenger cars, vans, camper vans, motor cycles and light-duty trucks. The car, to which your company receives title after the end of the agreement, mainly serves as sufficient collateral.

Down payment for new cars and used cars usually accounts for 10‒20% and 20‒30% of the purchase price, respectively. The down payment may be in the form of cash, vehicle traded in or both.

  • The credit period is 1‒5 years, depending on your company's choice.
  • The interest rate is fixed throughout the agreement term.
  • The monthly instalment remains the same throughout the agreement period.

Comprehensive motor vehicle insurance as part of hire purchase

You can take out a comprehensive motor vehicle policy to be included in the hire purchase agreement. It is a convenient and affordable alternative to insure your company's car. The insurance premiums will remain fixed throughout the agreement period and will be charged as part of the monthly hire purchase instalment.

Request a comprehensive motor vehicle policy from your car dealer when concluding a hire purchase agreement.

Manufacturing machines and equipment, transport equipment as well as working and forest machines constitute typical assets bought through hire purchase. Your company can also buy on hire purchase machinery and equipment purchased from abroad.

As the main rule, the financed amount accounts for 70‒80% of the purchase price

Your company can also make use of our supplementary services that may be included in hire purchase, such as interest rate cap or the corporate loan payment protection insurance.