What does flat rate mean?
A flat rate is calculated against the original amount borrowed and is not the same as APR, so the two should not be compared as if they are identical.
The exact meaning can vary depending on the asset, lender criteria, agreement wording and business circumstances.
Related finance product
Hire Purchase
A straightforward route to eventual ownership with fixed monthly payments and clear budgeting.
Written by: Hart Asset Finance
Reviewed by: T & L Leasing Limited trading as Hart Asset Finance
Last reviewed: