hp plus

A fixed rate hire purchase facility with extra flexibility and added peace of mind.

The HP Plus repayments are scheduled using a fixed rate of interest and include capital and estimated interest for ease of budgeting;

plus - helping you save on interest charges if you make optional lump sum repayments or end the agreement early.

plus - to offer you peace of mind HP Plus comes with a ‘Take a Break’ feature – the ability to take an unplanned payment holiday.

The interest is calculated (at the fixed rate) daily on the remaining capital balance so any lump sums paid would consequently shorten the repayment period and any missed or partial payments would consequently lengthen the payment period, in essence ‘fix the payment, float the period’.

The interest rate is fixed and documented at the start of the agreement so the interest rate is clear should you elect to Take a Break.

Take a Break  – is a feature unique to HP Plus that gives you the option of taking an unplanned payment holiday by giving us as little as 15 days’ notice of the months for which you would like to ‘Take a Break’ from your payments for 1 or 2 consecutive months.  You can do this once in each year for a total of six months’ payment holidays during a three, four or five year agreement. Terms apply.

If you take a payment holiday, we will simply extend the period of the agreement, calculating the cost of the holiday using the original interest rate. There is no access fee charged. The payment amounts will not change, but the period will be lengthened as appropriate, and the final payment may need to be adjusted up or down slightly to balance the account.

Take a Break is standard on eligible agreements. For the rare occasions where the agreements is not eligible for Take a Break but still benefits from the interest savings when lump sum payments are made or early settlement, the feature is removed and clearly stipulated on the agreement from the outset.

The goods become yours when all payments have been made, including the option-to purchase fee.

Note: HP Plus is not available on regulated credit agreements (i.e. if you are a sole trader or partnership with three or less borrowing up to £25,000).

Benefits of HP Plus:

• You will own the goods after the final payment
• The Take a Break feature is standard on eligible agreements
• Ability to pay off lump sums and save on interest
• Interest is calculated daily, which is beneficial if lump sum or early settlement payments are likely
• Interest rate is agreed and fixed at the time of documentation
• Fixed repayments of capital and interest
• Accurate budgeting
• VAT is usually fully reclaimable
• Hedges against inflation and interest rate rises
• Interest charges are usually tax allowable
• Tax writing-down allowances may be available, including the Annual Investment Allowance and Corporation Tax full expensing
• The asset itself offers the security to the lender, therefore other forms of security such as personal guarantees or property are usually not required.

What happens at the end:

You pay a nominal option-to-purchase fee at the end of the agreement, and ownership transfers to you

Want to settle your agreement early?

You can request a calculation at any point during the agreement which will show you how much you would need to pay if you wanted to end the agreement early. The goods are yours when all payments have been made.

Each repayment is made of capital and interest. The proportion of capital and interest will vary each month and the capital balance reduces as each repayment is made. So, the amount of interest you pay at the beginning of the agreement is higher than it is at the end.

Thinking of ending early? Request a settlement

How it compares:

Other considerations:

Assets on the agreement may be repossessed if you do not keep up with the payments.

Typically, the minimum balance to finance on any agreement type with JCB Finance is £5,000.