Way Agreement
A 600 Finance 
Way Agreement is structured in a similar way to Hire Purchase. At the end of the period you can opt to purchase the asset for a predetermined figure. This form of agreement is also known as Contract Purchase.
Alternatively, the goods can be returned to 600 Finance or to the supplier, dependent on the individual terms of the agreement. Way is normally an 'on balance sheet' funding option and therefore may appeal to a business which prefers to ensure that assets are shown on the balance sheet. The balloon payment figure is determined by looking at the specification of the asset being financed and the anticipated usage thereof.
Potential Benefits
Low monthly payments when compared to normal Hire Purchase
Opportunity to acquire the asset at the end of the period for a predetermined figure
Preserves other lines of credit
Writing down allowances
Interest can be tax allowable
TYPICAL EXAMPLE
Machine Cost | £50,000.00 + VAT |
Deposit | 10% + full VAT |
60 monthly payments of | £793.00 |
Balloon payment | £17,000.00 |
At the end of the period, the customer can either:
Buy the asset for the amount of the balloon payment and option to purchase fee or,
Hand back the asset in good condition with no further liability or,
Renegotiate an extension for a further period. (subject to status)
600 Finance could also fund your VAT on a short term basis, until you have claimed and received the funds back from Customs & Excise. This benefit could significantly reduce the impact on your cash flow.