Business Hire Purchase

Hire purchase and asset finance are both ways to fund business equipment, but they work differently.

With HP, you pay for an asset in regular instalments and usually have the option to own it at the end of the agreement. Asset finance, on the other hand, often includes leasing or refinancing arrangements where ownership may remain with the lender, and repayments are structured around the asset’s use rather than eventual purchase.

HP is ideal if you want to eventually own the asset, while asset finance can be more flexible for short-term use or upgrading equipment regularly.

Deposits vary by the lender and asset, but commonly range from 0 to 30% of the purchase price. When we present your hire purchase terms, we’ll clearly show the required deposit so you know exactly what’s expected upfront.

Terms typically run from 1 to 7 years, depending on the asset and lender flexibility.

You (the hirer) are normally responsible for maintaining and insuring the asset during the HP term unless the lender states otherwise.

The main documents required for a hire purchase often include:

• Business Plan: Outline your business and how the asset will be used
• Financial Statements: Income statements, balance sheets, and cash flow statements
• Tax Returns: Personal and business tax returns for the past few years
• Bank Statements: Recent bank statements
• Legal Documents: Business licences, registrations, and ownership agreements

Yes – many lenders will fund used assets subject to age, condition, and residual value criteria.