Hire purchase

Flexible buying for business

Through a pre-arranged hire purchase agreement with Clydesdale Bank, you can look for the best asset for your business, knowing the finance is available (subject to status). After agreeing a flexible payment plan to suit your business circumstances, you can buy what you need for your business and the title will pass onto you at the end of the agreement term and after payment of the completion fee.

Benefits of hire purchase:

• We will work out the best repayment options with you to suit your business and trading patterns
• Interest charges can be offset against taxable profits and capital allowances can be claimed

Further features

• Dedicated relationship manager
• Competitive fixed or variable interest rates
• Goods are treated as assets on the balance sheet from the start of the agreement
• Eventual ownership of asset at end of term upon payment of nominal completion fee

Important information

• Interest rate
  • Interest rates – may be individually negotiated and the amount you are charged will depend on your circumstances – speak to your relationship manager for more details
• Interest type – fixed or variable rates
• Interest calculated
  • Fixed – calculated at inception
  • Variable – calculated daily
• Minimum term – 6 months
• Maximum term – negotiable
• Costs
  • Documentation fee – negotiable and paid at the outset of the transaction
  • Completion fee – negotiable and paid to transfer ownership at the end of the term
  • Fees and charges – may be individually negotiated and the amount you are charged will depend on your circumstances – speak to your relationship manager for more details
• Terms and conditions
  • Deposit may be required
  • You claim capital allowances
  • It is your responsibility for the ongoing maintenance of the asset
  • Full terms and conditions are available on request

Additional solutions

• Business Cash Management

The value of any tax benefits to you depends on your individual circumstances, the Law and Her Majesty's Revenue & Customs (HMRC) practice, which are subject to change.