2 min read
Definition
Hire purchase is a form of asset finance where a company pays for an asset in regular instalments and becomes its legal owner once the final payment (and any option fee) is made. Until then, the finance provider retains title as security.
In plain terms
You use the asset from day one, pay for it over time, and it's fully yours at the end — a bit like a mortgage for a machine or van.
Why it matters for your company
HP spreads the cost of essential kit while letting you claim capital allowances, and preserves cash for trading. See asset finance.
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