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.