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BALANCED PAYMENTS PLAN
Balanced Payment is a finance option for contracts over £25,000, with the advantage of fixed monthly payments. However, unlike Hire Purchase, where the interest is fixed, balanced payment plans track changes in the finance house 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 include a deferred final ‘balloon’ payment, or settling your agreement early with a lump sum payment.
The Benefits of Balanced Payment Plan
- Low deposit - keeps valuable personal or business cash available
- Flexibility – optional lump sum payments
- Competitive - low cost options for early termination
- Fixed monthly payment - perfect for budgeting
- Tax benefits - Tax allowances for business users
- Potential savings - save if interest rates fall
- VAT free - no VAT on payments
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