Variable Rate
Also known as Balanced Payment Plan is a variable rate Hire Purchase agreement with the benefit of fixed monthly payments.
Interest is calculated daily at an agreed percentage over Finance House Base Rate (FHBR), and is repayable monthly or quarterly.
When the base rate fluctuates , only the number of payments varies but the amount of payment says the same, thus helping your monthly budgets and cash flow administration.
It is also possible to settle the entire agreement early and only pay the interest up to the date of the settlement. Lump sums can also be paid off and further reduce the overall interest charges.
Hire Purchase Benefits
Offers the obvious cash flow benefits of paying in instalments with all the benefits of ownership
Interest rate fixed at time of signing for budgeting and cash flow
Tax efficiency as a business can claim writing down allowances
Vat fully reclaimable
Flexibility of tailor made deposits, periods and repayments to suit you specific business needs