Specialists in Car Finance
Branching away from dealer finance, or looking into specialised classic and supercar financing? Whatever your next dream car is, we can help fund your ambition.
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Our 5 Top Tips for Car Finance
We know that choosing the right finance for your dream car can be challenging. Here are our top five tips to help you make the best decision.
Read MoreSpecialists in Business Finance
Tailored commercial finance solutions to help businesses expand, invest, and manage cash flow with ease.
Discover Business Finance
Why Use a Commercial Finance Broker?
Whether you're seeking assets, expansion or managing cash flow, a business finance broker can make all the difference.
Read MoreAbout Charles & Dean
From fostering ambition and innovation to building lasting partnerships, we’re committed to leading in motor & commercial finance solutions.
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Tom Perkins Joins NACFB Board
An exciting milestone for Charles & Dean, Tom has recently been appointed as a Non-Executive Director of the National Association of Commercial Finance Brokers (NACFB).
Read MoreHire Purchase (HP) is a popular option for financing business assets. At Charles & Dean, we help you understand HP, its benefits and drawbacks, and how our broker team can find the most suitable financing solution for your business.
What is Business Hire Purchase?
Business Hire Purchase (HP) is a straightforward and flexible way to finance commercial vehicles, machinery and other high value equipment whilst preserving your cash flow.
Here's how it works:
Start with an upfront deposit, typically 10% or more of the equipment’s value. This initial payment reduces the overall amount financed, making your payments more manageable for your business.
Pay fixed monthly payments over a term of 1–5 years, giving you a clear, predictable cost structure for your commercial vehicles, machinery, or high-value equipment. Plan with confidence and no surprises.
At the end of the agreement, you have the flexibility to either own the asset outright, return it, or explore new financing options. This ensures your business can continue to grow and adapt with the right tools.
Product Suitability
Business Hire Purchase offers a straightforward path to owning commercial vehicles, machinery, or other high-value equipment, with fixed monthly payments and flexible terms.
Like any finance option, it comes with both benefits and considerations. Here’s a breakdown to help you make an informed decision for your business:
Enhanced Cash Flow Management Hire Purchase spreads ownership costs over manageable monthly payments, freeing up capital for other business needs.
VAT Deferral Businesses can defer VAT payments, allowing them to reclaim VAT from HMRC before repaying the lender, improving cash flow.
Seasonal Payment Options HP agreements can be tailored with lower payments during off-peak periods and higher payments during peak trading times.
Balloon Payments for Lower Monthly Costs Deferring part of the capital as a balloon payment reduces monthly commitments. This final payment can be settled through refinancing, asset sale, or direct payment.
Higher Monthly Payments Compared to other finance solutions like operating leases, HP has higher monthly payments.
Commitment to Fixed Payments Businesses must commit to monthly payments for the full term of the agreement, with the risk of asset repossession if payments aren't met.
We understand that every business is unique. Our brokers work with you to craft a financing plan that suits your operational needs.
With access to a broad panel of lenders and in-depth market knowledge, we secure competitive rates and terms that align with your financial objectives.
Our team streamlines the finance journey, offering specialist guidance and minimising hassle so you can focus on growing your business.
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Read MoreUnlock competitive funding solutions with guidance and support from our specialist team. Fill out the form below, and we’ll be in touch to schedule a call.
