Hire Purchase /
Block Discounting

Finance up to 90% for new machinery and up to 80% for used machinery, minimizing the initial capital outlay for businesses.

Hire purchase loans offer fixed monthly installments, making budgeting easier, especially for businesses in the vehicle rental and equipment leasing businesses.

Unlike leasing, hire purchase allows businesses to own the asset after completing all payments and this provides long-term cost savings compared to renting equipment indefinitely.

Interest paid on hire purchase loans is tax-deductible, and businesses can claim depreciation on financed assets, providing valuable tax relief.

Eligible equipment and machinery include

• Construction machinery such as lorries, excavators, cranes, forklifts, generators etc.
• Medical/Biotech machinery such as Dental chairs, Ultrasound, X-ray etc.
• Food production machinery such as blenders, grinder, mills, crushers, oven, grills etc.
• Vessels such as pleasure crafts, tugs and barges, dredgers etc.

With Block Discounting, businesses can sell hire purchase receivable to generate upfront cash, improving liquidity and allowing for reinvestment into new inventory or expansion.

The more HP Agreements you generate, the more you can discount, scaling your in-house financing exponentially. Funds can be drawn in blocks to match operational needs.

Block Discounting typically offers lower interest rates than in-house loans, allowing businesses to still profit from the interest spread while receiving upfront capital. Plus, the Rule of 78 ensures an interest rebate when you settle block loans early.