BALANCED PAYMENT PLAN

BALANCED PAYMENTS IS A FINANCE OPTION FOR CONTRACTS OVER £25,500, WITH THE ADVANTAGE OF FIXED MONTHLY PAYMENTS. HOWEVER, UNLIKE HIRE PURCHASE WHERE THE INTEREST IS FIXED, BALANCED PAYMENTS PLAN TRACK CHANGES IN THE LIBOR BASE RATE. AS RATES FALL OR RISE OVER THE PERIOD OF THE CONTRACT, SO DOES THE INTEREST CHARGE YOU PAY.

How does it work?

You pay an initial deposit, and repay the balance in fixed monthly payments over an agreed term set by you (12-60 months). At the end of the term any variation of interest is reconciled and will be settled as either a credit to you, or a charge. Other options available with Balanced Payment Plan includes a deferred final ‘balloon’ payment or settling your agreement early with a lump sum payment. Rates from as low as 5.9% APR eq are available which make this option very competitive.

This option is only available to:

• LLPs
• Limited Companies
• Sole Traders
• Partnerships
• Private individuals earning in excess of £120k per annum

The benefits of a Balanced Payment Plan

• Low deposit- keeps valuable personal or business cash available
• Control – you decide the deposit, you decide the term
• Fixed monthly payment – makes budgeting simple
• Flexibility – doesn’t compromise your other lines of credit
• Asset – you gain ownership of the car
• Tax benefits – tax allowances for business users
• VAT free – no VAT on payments
• Access to lower rates than a fixed rate agreement
• Ability to overpay on the capitol thus reducing interest costs
• Buffer in place to cover any interest rate rises should this occur
• Potential savings if interest rates fall