Lease Purchase and Hire Purchase are similar in that both lead to ownership, but they differ in structure. Lease Purchase typically involves lower monthly payments and a larger final balloon payment, while Hire Purchase usually has higher monthly payments but a nominal final payment. Lease Purchase also often offers more flexibility in payment structure.

Yes, you can usually claim capital allowances on the asset, including the Annual Investment Allowance (AIA). The interest portion of your payments may also be tax-deductible. However, tax treatment can vary, so it's best to consult with your accountant for specific advice.

If you can't afford the balloon payment, you typically have several options:
- Refinance the balloon payment over a new term
- Sell the asset to cover the balloon payment (if it has sufficient value)
- Return the asset to the finance company (though this may incur additional charges)
- Negotiate with the finance company for an extension or alternative arrangement

Yes, Lease Purchase is generally available for both new and used assets. However, some lenders may have restrictions on the age or condition of used assets they're willing to finance.

Yes, most Lease Purchase agreements allow for early settlement. You'll typically need to pay the outstanding balance plus any interest due up to that point. There may be early settlement fees, which should be outlined in your agreement.

The balloon payment is typically calculated based on the estimated residual value of the asset at the end of the agreement.
Factors considered include:
- The asset's expected depreciation
- The length of the agreementThe asset's anticipated market value at the end of the term
- The balloon payment is set to be lower than the expected residual value to ensure you have equity in the asset.

Lease Purchase is suitable for a wide range of business assets, including:
- Vehicles (cars, vans, trucks)
- Plant and machinery
- Construction equipmentAgricultural equipment
- Some types of technology or office equipment
- Generally, assets that retain value well and have a predictable depreciation curve are ideal for Lease Purchase.

Yes, many aspects of a Lease Purchase agreement can often be negotiated, including:
- The length of the agreement
- The size of the initial payment
- The amount of the monthly payments
- The size of the balloon paymentInterest rates (to some extent)At Elite Financing, we work with you to structure an agreement that suits your business needs.

Like any finance agreement, a Lease Purchase can affect your company's credit rating. Timely payments can positively impact your credit score, while missed payments can negatively affect it. The asset will typically appear on your balance sheet, which can influence your company's financial ratios.

While you have more freedom than with some leasing options, there may still be some restrictions, such as:
- Maintaining the asset according to the manufacturer's recommendations
- Not modifying the asset without permission
- Keeping the asset insuredUsing the asset only for its intended business purpose
- Restrictions on taking the asset abroad for extended periods
- Specific restrictions will be outlined in your agreement, and we'll ensure you understand these before signing.