HP Balloon explainer video Benefits of HP Balloon Suitability

What is HP Balloon?

A Hire Purchase Balloon agreement is a type of HP agreement for businesses, helping you free up cashflow by spreading the cost of your vehicle plus any interest over a period of time. The final balloon payment at the end makes the monthly repayments lower compared to a regular HP agreement.

No deposit is required and you can spread the cost of your vehicle over 36 to 48 months to suit your budget.

At the end of your agreement, you have two options: retain or replace the vehicle.

  • Retain: keep the vehicle by paying the balloon payment at the end and any administration and option to purchase fees.
  • Replace: you can part exchange your vehicle at a dealership for a new one, as long as the final balloon payment is fully paid.

HP Balloon explained

If you've found the perfect vehicle for your business and you're looking to spread the cost, you'll want to check what your finance options are. Watch our explainer video to fully understand what HP Balloon agreement is and how it could work for your business.

Benefits of HP Balloon

  • The opportunity to free up cashflow for your business
  • Lower monthly repayments compared to a Hire Purchase agreement
  • Flexible repayment terms
  • For limited companies, the opportunity to claim monthly interest (tax deductible interest), offset wear and tear costs against taxable income and deduct capital allowances from taxable income.
  • Access to our team of specialists.

HP Balloon could be a good option for you, if:

  • you want to free up cashflow for your business
  • you want lower monthly repayments in comparison to a HP
  • you want to spread your repayments over 36 to 48 months to suit your budget
  • you’re happy to pay a larger balloon payment at the end of your agreement if you decide to keep the vehicle
  • you can stick to your expected annual mileage
  • you’re a limited company and want to claim monthly interest (tax deductible interest), offset wear and tear costs against taxable income and deduct capital allowances from taxable income.
  • you want dedicated support from our Commercial Team.

Remember:

  • Finance is subject to affordability checks and is only available to UK residents aged 18 and over.
  • If you don't keep up with your repayments, the vehicle may be repossessed.
  • You don’t own the vehicle until you’ve fully repaid the finance including the balloon payment and option to purchase fee at the end.
  • A VAT deposit is required if VAT applicable.
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