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Another variable rate Hire Purchase agreement, but
budgeting is made easier because of the fixed equal monthly repayments of
capital and estimated interest. Actual interest is calculated daily,
based upon Finance Houses Base Rate or another mutually agreeable base
rate. Any movement in the chosen base rate is used to reflect either the
shortening or lengthening of the repayment period - hence the terminology
we use to describe it of fix the payment and float the period. This facility is not available to Sole Traders or Partnerships when borrowing less than £25,001.
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