The Hire Purchase agreements we arrange are generally for a term of seven years or more and have a fixed level of monthly repayments and a nominal fee associated with the option to purchase. Under these agreements you select the equipment and the installer, and then we will buy the equipment once it is installed.

A hire purchase agreement is a lease which includes an option to purchase the assest for a nominal sum at the end of the hire period.

THe structure effectively transfers the risks and rewards of ownership to you on the day the agreement is entered into and treated by HMRC as a purchase in so far as capital allowances can usually be claimed by you on the whole value of the system when the agreement is signed.

The finance leases we arrange are similar to the Hire Purchase agreements with a term of seven years or more and a fixed level of monthly repayments. At the end of the finance lease the assets will revert to the lessor nut most agreements will allow the borrower to continue to ease the equipment in perpetuity for the payment of a fee. Under these agreements you select the equipment and the installer, and the financier will buy the equipment on your behalf.

A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. There may or may not be an option to purchase. If there is an option to purchase then the lease is a Hire Purchase Agreement.

Generally, most Finance Leases for Solar systems will be classified by HMRC as “Long Funding Leases” and so the tax treatment of the agreement will be analogous to the treatment of a financing instrument of a Hire Purchase agreement taken out for the same period.

You can always fund some or all of the project using your own cash or borrowing from your existing bank. We will prepare analysis estimating the breakeven period should you fund the installation with your own money and showing the total savings with and without financing from us or another lender so you can compare the different approaches.

Grants

The first thing we do is try to reduce your funding requirement by helping you identify any grants that may be available to support the project. See our detailed guide to grants for more information.