Letter of Agency

Cash-buyer negotiating power.

A Letter of Agency enables cash-buyer negotiating power or is helpful where you do not want to reveal to your supplier that you use an external source of finance. The amount borrowed is then usually paid back over a pre-agreed period in the form of a hire purchase (HP) agreement, including; Fixed Rate Hire Purchase, HP Plus, HP Variable and HP Equalised Payments.

Note: Letter of Agency 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 Letter of Agency:

• You gain cash-buyer negotiating power
• Confidentiality is absolute
• You have sole contact with the dealer
• You gain the other benefits of hire purchase once you enter the subsequent agreement

Other considerations:

You will need access to cashflow to pay outright for the goods before entering into the finance agreement with JCB Finance

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.