Buy, lease or use hire purchase?

Compare the agreement, not just the monthly price

An outright purchase uses cash to buy the equipment. Hire purchase typically spreads the purchase through a deposit and instalments, with ownership following completion and any final purchase payment. A lease generally pays for the use of equipment; do not assume ownership transfers at the end.

A lower payment can result from a longer term or a different final obligation. Ask for the full written schedule and total payable before comparing offers.

Ask equipment-specific questions

A reformer is an asset you need to keep safe and usable. Establish who pays for servicing, insurance, repairs and replacement parts, and what happens if it is unusable. Confirm who handles a supplier dispute and when payments begin.

• Are delivery, installation, towers and accessories included?
• Can the funder accept used equipment and this particular supplier?
• What deposit and VAT cash payment are due, and when?
• Is there a balloon, purchase fee, continuing rental or return requirement?
• Can you sell, move or replace a reformer during the agreement?
• What would early settlement or an early exit cost?

Check tax and VAT using your actual proposal

VAT timing and tax treatment depend on the agreement and your business. Get the cash requirement in writing and ask your accountant to check it. A supplier claim about tax savings is not a calculation for your studio.