Business hire-purchase or conditional-sale debt

​You can buy goods on all sorts of different credit agreements. With most credit, you own the goods straight away and only owe the money to the creditor.


your rights

If you or your creditor wants to end your agreement, your rights will depend on:

  • what business status you are;
  • what name is on the agreement; and
  • how the agreement is regulated.

Contact us for advice.

Hire-purchase or conditional-sale agreements are different to ordinary loans from a bank or a finance company.

  • You don’t own the goods until you make the final payment.
  • Also, the creditor could take the goods back if you fall behind on payments.

If you want to keep the goods, hire-purchase or conditional-sale debt must be treated as a priority debt. Cars are one of the most common items bought on hire purchase, but some finance companies also sell business equipment using hire-purchase or conditional-sale agreements.

Dealing with your priority debts and Business hire purchase or conditional sale