A Guide to Day to Day Plan

A true Day to Day Plan offers the benefits of a fixed capital monthly payment with variable interest added monthly based on the true LIBOR costs at the time. Similar to the Balance Payment Plan, this also tracks the changes in the finance house base rate, LIBOR or bank base rate, depending on the agreement. As rates fall or rise over the period of the contract so does the interest you pay, hence you have varying interest elements monthly, but a fixed term for the agreement,

How does it work?

You pay an initial deposit and pay the balance in fixed monthly instalments over an agreed term (12-60 months), with interest calculated daily and added in addition to the capital element each month.

The term of the agreement remains fixed, however should rates increase or decrease this will be reflected in the monthly payments.

As per the Balanced Payments Plan you can also include a deffered final balloon payment and the ability to make lump sum reductions during the agreement.

The benefits of Balanced Payment Plan

Flexible – minimum 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 allowances for business users
Potential savings - save if interest rates fall
VAT free - no VAT on payments
Cheaper funding method than conventional finance