How does Hire Purchase work?
- 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 to 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 or variable term repayments
Things you need to know
- Whether we provide credit depends on your circumstances, and you must be 18 or over. Lending terms and conditions apply.
- The rate and term at which we lend will reflect our assessment of the circumstances of your business, the chosen loan amount and the loan purpose. Written quotations are available on request.
- We are a member of UK Finance and we operate our business in accordance with the Invoice Finance and Asset Based Finance Standards Framework
- The Standards Framework, the guidance and the complaints procedure can be viewed on the UK Finance website at ukfinance.org.uk .
Get in touch with us using one of the ways below.
Write to us
Danske Asset Finance,
Donegall Square West,
*Lines are open between 9am and 5pm Monday to Friday except for bank holidays or other holidays in Northern Ireland when the bank is not open for business.