Balanced Payments Plan
(balloon optional)

Balanced payment is a finance option resembling Hire Purchase (HP) for contracts over £25K. Unlike HP, where interest is fixed, balanced payment tracks changes in the finance house base rate. As rates fall or rise, so does the interest charge you pay over the period of the contract.

After the initial deposit, the balance is repaid in fixed monthly instalments over an agreed period (12-60 months). At the end of the agreement any interest variation is reconciled and settled as final credit or a charge. Options include a deferred 'balloon' final payment or lump sum payment to settle the agreement early.

Why consider Balanced Payments?

Low deposit - keeps valuable personal or business cash available

Flexibility - ability to make 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