Spread the cost, own it at the end.
Hire purchase is the UK's most popular asset finance product — a deposit, fixed monthly payments and you keep the kit at the end of the term. Ideal for vehicles, plant and machinery you'll use for years.
At a glance
- From £5,000 up to £2 million per asset
- Terms from 12 to 84 months
- Annual flat rates from 6.4% for prime credit
- Tailored deposit & balloon structures
- Full ownership at term end
From
6.4%
Decision
24 hrs
Up to
£2m
From enquiry to funded — usually inside a week.
Enquire in 60 seconds
Tell us the asset, the amount and the timing. Soft search only — no impact on your credit score.
We get to know your business
A dedicated account manager picks up the phone, sense-checks your goals and gathers what we need.
We shop the market for you
We package the application, run it across 60+ specialist lenders and bring back the strongest no-obligation quotes.
Funded — usually in days
Accept the offer and sign electronically. Funds release direct to the supplier or to your account.
How business hire purchase actually works.
Hire purchase (HP) lets you acquire an asset without paying the full price upfront. You pay an initial deposit, then fixed monthly instalments over an agreed term — typically 2 to 6 years. The lender legally owns the asset throughout the agreement.
At the end of the term, once all contractual payments have been made, you pay a small option-to-purchase fee and the title transfers to you. From day one you have full use of the asset, and on day one of ownership you owe nothing more.
Because ownership transfers at the end, HP is best suited to assets with a long usable life and meaningful residual value — vans and trucks, plant and machinery, manufacturing kit, construction equipment.
Worked example
£60,000 box van
5-year hire purchase, 10% deposit
- Deposit (paid day one)
- £6,000
- VAT (reclaimed in next return)
- £12,000
- Amount financed
- £54,000
- Monthly payment (60 months)
- £1,089
- Option-to-purchase fee
- £150
Indicative only — assumes 6.9% annual flat rate. Actual quote subject to credit and asset.
Six reasons UK SMEs
still pick hire purchase.
Get the kit you need now
Avoid price inflation by buying at today's prices and put the asset to work straight away.
Preserve existing credit lines
Keep your overdraft and bank facilities free for working capital and emergencies.
Structure deposit to suit cash flow
From nil-deposit through to 30%+ — bigger deposits mean lower monthly payments.
Capital allowances from day one
Asset on your balance sheet — typically qualifies for full expensing or AIA, subject to your tax position.
Fixed competitive rates
No exposure to BoE rate moves. Budget the same payment, every month.
Guaranteed ownership at the end
Pay a small option-to-purchase fee at term end and the asset is yours, free and clear.
Hire purchase, answered.
What happens at the end of a hire purchase agreement?
You have a guaranteed right to take title of the asset for a small administration fee (typically £75–£250). The kit is then yours outright with no further obligations.
Are hire purchase payments tax deductible?
Because hire purchase results in ownership, you can't deduct the full payment against profits. However, you can typically claim capital allowances on the asset (often 100% in year one under AIA or full expensing) plus the interest portion of each payment. We always recommend speaking to your accountant.
How much deposit do I need?
Often nil-deposit deals are available, especially for prime credit. A larger deposit (10–30%) reduces monthly payments and can unlock sharper rates on bigger-ticket assets.
What about the VAT?
On hire purchase the full VAT is invoiced upfront and is reclaimable in your next VAT return. If that lump sum hurts cash flow, finance lease may suit better — VAT is then spread across each rental.
Can I settle the agreement early?
Yes. You can request an early settlement figure at any time. Most lenders apply a small rebate of future interest under the Consumer Credit Act formula or its commercial equivalent.
What if my credit isn't perfect?
We work with specialist lenders for adverse credit, CCJs and businesses trading less than 12 months. Rates are higher but funding is often still possible — speak to us before assuming you can't be funded.