Some HPs include the option of a balloon payment – your monthly payments will be cheaper over the term, but at the end you’ll make a larger, final payment to purchase the asset. Alternatively, you can arrange to clear the balloon as part of selling the asset, and upgrade to newer equipment, or redeploy the freed up working capital elsewhere in your business.
Hire purchase agreements are most commonly used when buying vehicles, equipment and machinery.
Deposits can be as little as just the VAT, which can be paid upfront, or deferred until you have claimed it back from HMRC. With HP you can claim tax relief on the cost of the asset, through capital allowances (Please seek specialist advice from your accountant).