This type of agreement enables the purchase of costly equipment through an instalment plan. The goods remain the property of Praetura until the final payment has been made; the final payment will include a one-off option-to-purchase fee, which will transfer ownership to the purchaser.
Hire purchase is suitable for a wide range of asset types, from vehicles to manufacturing equipment, and is helpful for businesses that need to replace old, defunct items or expand their services with state-of-the-art equipment. Praetura’s aim is to support through funding, so we take the individual needs of a business into consideration, including quirks particular to the market sector like seasonal cash flow patterns, and tailor facilities to match individual company cashflow.
With hire purchase, the amount and date of monthly repayments are set, which is essential for business budgeting and cash flow purposes. In addition, they aren’t subject to VAT and other charges can often be offset against profits for taxation.
If hire purchase sounds like the ideal solution, get in touch and we’ll run through it in more detail.