What is Hire Purchase?

Hire purchase is a fixed interest rate facility where ECF pays the supplier for the equipment on behalf of the customer.

Title in the goods will pass to the customer at the end of the contract upon payment of a nominal fee.

The whole of the VAT must be paid on the
purchase price at the outset of the agreement.

Hire Purchase Benefits

Ownership of the asset
Low initial outlay
Fixed rate repayments

Examples of Assets

Buses and Coaches
Printing Presses
Plant and Equipment

Case Study

A strong, profitable commercial vehicle hire company based in the South West, with a large capital expenditure programme to further a recently awarded national contract, required additional finance to complete the vehicle acquisition.

“We knew that we could get finance for a large proportion of the new vehicles from our usual funding lines but we were short by £300,000. Following a successful meeting with ECF at our premises in Bristol, they were comfortable with the discounts we had negotiated on the vehicles; happy with the strength of the contracts and appreciated the visibility of our business. From that meeting they offered us a £300,000 Hire Purchase facility for the life of the contract.”