A variable rate Hire Purchase agreement that makes budgeting made easier because of the fixed equal monthly repayments of capital and estimated interest. The actual interest is calculated daily, based upon NatWest Base Rate or another mutually agreeable base rate. Any movement in the chosen base rate is used to reflect either the shortening or lengthening of the repayment period - hence we describe it as fix the payment and float the period.

This, like other variable rate options are popular when interest rates are expected to fall or you expect to settle the entire agreement early or pay off lump sums.

Note: HP Equalised Payments is not available on regulated credit agreements (i.e. if you are not a Limited or Public Company, Limited Liability Partnership, a Partnership with 4 or more partners and are borrowing £25,000 or less.)

Benefits:

• Fixed repayments of capital and interest
• Enjoy savings when interest rates fall
• Accurate budgeting
• No monthly/quarterly interest bills
• No additional costs for early settlements
• Ability to pay off lump sums
• VAT fully reclaimable
• Tax writing down allowance available including the Annual Investment Allowance
• Interest charges are tax allowable
• The machine is yours after the last payment
• Can be linked to dealer service, repair and maintenance agreements

How it compares: