Fixed Rate Hire Purchase
What is fixed rate hire purchase?
Fixed Rate Hire Purchase is a way of spreading the cost of buying goods through making regular instalments consisting of capital and interest calculated at a fixed rate at the start of the agreement.
Businesses that purchase plant, equipment or vehicles may choose to fund them using Fixed Rate Hire Purchase and preserve their working capital (cash) for things such as tax, fuel, wages and other running costs. As the interest rate is fixed at the outset, it hedges against inflation and interest rate rises, which makes it an option that helps with accurate budgeting.
A schedule of instalments is agreed in advance, which helps with cashflow planning and budgeting. They can be monthly, quarterly, annually or a bespoke schedule to match your business needs. Ownership of the goods will be yours when you have made all instalments including an Option to Purchase Fee. VAT relating to the purchase price is usually payable at the start of the agreement and is usually reclaimable. Tax relief may be available, including the Annual Investment Allowance or Corporation Tax full-expensing relief.
J.C. Bamford Excavators Ltd is an appointed representative of JCB Finance Ltd, who are registered with the Financial Conduct Authority as a lender. Finance provided and subject to acceptance by JCB Finance Ltd. Subject to your consent, JCB Finance Ltd will pay a commission to the UK JCB dealer network, which is a flat fee plus basic rate tax and employer National Insurance contributions for each JCB machine on the finance agreement. These payments are not additional fees that you will have to pay and is not added to the amount you pay under your finance agreement. UK business users only. Terms and return conditions apply. Asset(s) on the agreement may be repossessed if you do not keep up with the repayments. Other finance options are available, see the JCB Finance website for details - www.jcb-finance.co.uk/finance-options.