BALANCED PAYMENT PLANS
With a Balanced Payments plan, the interest, rather than being fixed for the term of the agreement is linked to a base rate, usually 1 month LIBOR. The monthly repayments are set at the outset for ease of budgeting based on an assumed base rate and will not change. Any adjustment required because of any changes in base rate throughout the term are made at the close of the agreement.
DAY TO DAY INTEREST
With a Day to Day facility, interest is charged on the reducing capital balance. The repayments on the day to day option will change each month as the balance reduces and any changes in base rate are made immediately. As with the Balanced Payments Plan the base rate used is usually 1 month LIBOR.
Please note both variable facilities are only available for either, high net worth individuals, where the vehicle is being used predominantly for business use or for limited companies. More details available on request.