The Daily Interest Plan offers many benefits to eligible clients. Unlike hire and lease purchase where the interest is fixed, the Daily Interest Plan tracks changes in the finance house base rate, LIBOR or bank base, depending on the agreement.
The Benefits of the Daily Interest plan
- Flexible interest penalty options for early settlement
- Low deposit – doesn’t tie up cash reserves
- Adaptable – optional lump sum over payments
- Predetermined reduction in capital every month that is viewable
- Tax benefits – tax allowanced for business users
- Potential savings – save if interest rates fall
- Vat free – no vat on payments
- Cheaper funding method than conventional finance
As interest rates rise or fall over the period of the contract so does the interest charge you pay. Our Daily Interest Plan offers the benefits of a fixed capital monthly payment with variable interest added monthly based upon true LIBOR costs at the time.
How does it work?
There is an initial deposit and the balance is then paid in fixed capital monthly instalments over and agreed term of your preference (12-60 months). The interest is calculated daily and affects the capital element each month.
The term of the agreement remains fixed while the monthly repayments will reflect increases or decreases in interest rates.
The Daily Interest Plan can also include a deferred final ‘balloon’ payment and the ability to make lump sum reductions during the agreement.
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