Hire Purchase

• Hire Purchase gives you the freedom and flexibility of a cash buyer but without the initial capital outlay – deposit only required
• The cost of your capital assets is spread over a pre-determined period usually 2 – 5 years, preserving your cash flow for use in the business
• Buy at today’s prices and repay from future income with flexible repayments that can be matched to your cash flow 
• VAT is normally paid on signing the agreement - no VAT payable on repayments 
• Funds to purchase the asset are sent to the seller of the asset
• Interest charges may be offset against taxable profits 
• Capital allowances are the same as those of outright purchase 
• Assets appear on the balance sheet from the start of the agreement
• The asset is owned by Northern Bank Limited.  Transfer of ownership is on completion of the agreed term with payment of a nominal option-to-purchase fee 
• Option of fixed, variable or variable term repayments
  

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