How hire purchase is helping SMEs to thrive


How does hire purchase work?

Purchasing vehicles, machinery or equipment can be challenging for small to medium sized enterprises (SMEs). Large upfront costs can put a strain on cash flow and therefore limit the growth aspirations of a business if they cannot access the resources they need to operate. 

Our hire purchase facility allows firms to spread the cost of investing in vehicles, equipment or machinery over a fixed period of time. This provides flexibility, and at the end of the repayment term, they will have full ownership of the asset. 

Our specialists have expertise in a wide range of industries including agriculture, construction, engineering, manufacturing, materials handling, packaging, print, transport & logistics and waste & recycling.

What are the benefits of hire purchase?

  • More time to repay: Spreading the cost over the life of the asset means the initial outlay can be lower, allowing you to budget effectively with manageable fixed monthly payments.
  • Seasonality: We understand that seasonal fluctuations can have an impact on cash flow, so we can tailor your monthly repayments to take this into account. 
  • Ownership: This type of asset finance gives you instant access to new equipment, vehicles and machinery for the long-term and unlike leasing, once the final repayment is made, you will own the asset outright.
  • Control: Hire purchase allows you to maintain control as you have full use of the asset throughout the repayment period and can normally claim capital allowances 
  • Tax efficient: You can offset your hire purchase interest and charges against pre-tax profits.

When one of Ireland’s largest sawmills needed to invest in new machinery, they opted for a hire purchase facility with Close Brothers to spread the cost over a longer payment term. By investing in these new systems, they were able to increase the efficiency of the production process and remain ahead of their competitors, without impacting their cash flow. 

Read the full story here

To find out how we can help, call today on: 01 871 1060