What is Hire Purchase?
Hire Purchase provides the flexibility to spread the cost of an asset over a fixed period. It offers you fixed monthly repayments, so you can manage your budget effectively over the repayment term. Plus, when the repayment term is finished, you own the asset. We would always encourage our clients to seek guidance from their accountants to ensure whether a Lease or Hire Purchase is the best option, particularly with regards to VAT and tax planning.
Are there any tax benefits?
Assets may potentially be claimed against your taxable profit, under capital allowances, which is an advantageous tax benefit that should be explored.
What other provisions are made for businesses to ease the payment schedule?
Assuming we get the information we need and the underwriting team agrees, we can offer our Low Start facility. Existing loans or debt can also put pressure on the cash flow of a business wanting to expand so we can consider consolidating debt to free up valuable cash flow, which can be reinvested back into the business.
What is a Low Start facility?
Our Low Start product provides a flexible repayment option, enabling us to match repayments based on expected income levels. This means you could pay a minimal monthly payment for an initial period, up to a maximum period of six months. This allows you time and space to build up cash flow in the business while having full use of the equipment. This is especially important for new start or expanding businesses.
Can an established business take advantage of the Low Start facility?
Yes, we offer this for both new and established businesses.
How do I apply?
Simply tell us how much you wish to finance, the purpose and the term you prefer. Our finance agreement will be tailored to suit you with fixed payments over an agreed term. In the early stages, most communication is conducted by email or phone calls, or a mix of the two, however we’re also happy to meet you face-to-face if that’s your preference. We are very flexible and adapt to your needs – we understand you’re busy during working hours, and we’re happy to speak or pick up messages and texts at a time that suits you.
Will previous negative financial decisions affect the application?
Understandably and given the tough trading conditions that Covid has brought, some clients have been known to withhold what they feel could be perceived as negative information, thinking it will lead to their application being declined. This is not the case in Braemar Finance, because we make decisions based on the overall health and future plans for the business.
Knowing everything up front means we can address any queries and explain the situation to our in-house team of underwriters, helping them to reach the right decision for us both.