Leasing & Hire Purchase Checklist

STAGE 1: Leasing or Hire Purchase?

• Does leasing an asset suit your business?
  What do you want to do with the asset at the end of the rental agreement? Do you want to continue to rent it, return it or replace it?

• Does a Hire Purchase agreement suit your business?
  Do you want to own the asset at the end of the contract?

STAGE 2: Are you a suitable candidate for Leasing or Hire Purchase?

• Can you prove your ability to finance repayments?
  Your business doesn’t need to be profitable, but you need to display your ability to make your rental payments.

• What does your Credit Report look like?
  Leasing and Hire Purchase providers will look at your business’ credit report. A poor credit rating won’t necessarily result in rejection, but you may get less favourable terms.

STAGE 3: Understanding the agreement

• Do you know what the agreement involves?
  Do you need to pay a deposit at the start of the agreement? Do you need to provide other security? Can you reduce monthly repayments by paying more upfront or extending the term, depending on the type of asset?

• Do you understand the payments involved?
  Are payments fixed? Is there a minimum term to the rental agreement? Are there any fees involved at the end of the contract or for paying off early?

STAGE 4: What happens when the agreement or contract ends?

• At the end of a Leasing agreement?
  Do you have an option to continue renting the equipment at the end of the minimum or primary term? Will you want to return it? Or will you look to replace it?

• At the end of a Hire Purchase agreement?
  Is there a fee payable to secure title to the asset?