Business Hire Purchase

Buy the equipment your business needs, and spread the cost without tying up working capital or putting other assets at risk.

Access to 104+ Specialist Lenders
Spread Costs for up to 7 Years
HP Agreements From £10,000 + VAT
Flexible Terms to Suit Cash Flow

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What Is Business Hire Purchase?

Hire purchase (HP) lets your business acquire the equipment it needs without paying the full cost up front. Instead of buying outright, you pay fixed monthly instalments over an agreed term – up to 7 years – which spreads the cost and protects your working capital.

At the end of the HP agreement, you have the option to take ownership of the asset by paying an agreed final payment. If you decide not to keep it, the asset can usually be returned to the lender, so you only commit to ownership if it still suits your business.

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Please note this is not a quotation for finance, this is for illustrative purposes only. The figures are available to UK incorporated businesses only. The value provided is intended as a guide only. For an accurate quotation please contact us.

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How Can Hire Purchase Benefit Your Business?

Hire purchase is a popular option for businesses, providing the following benefits:

Secure the equipment you need now without tying up large amounts of working capital.
Spread monthly payments so you can plan cash flow and reinvest in your business.
At the end of the agreement, you can often buy the asset with a final payment.
Interest and certain finance charges may be allowable against taxable profits.
Faster funding decisions than many traditional purchase routes.

Eligibility Criteria for Hire Purchase

Startups, sole traders and limited companies are all eligible
Good business / personal credit / good Delphi score
No default payments or outstanding County Court Judgment (CCJ)
All company directors need to be UK citizens or hold Indefinite Leave to Remain. (Not all lenders require proof, but some may ask)
Funding can proceed regardless of trading history, provided credit is clean and stable

Should you fulfil the above, we are confident we can take your business to the next level.

Additional Information:

For loans above £50,000, the customer must be a homeowner.
Non-homeowners are eligible for loans up to £50,000 only.

Exclusion Criteria:

Turnover of less than £100k.
Outstanding CCJ's.
Customers with severe adverse credit.

Additional Information:

Homeownership is not directly linked to the amount you wish to borrow
If directors are non-homeowners, many lenders will require a third-party homeowner guarantor

Exclusion Criteria:

Outstanding CCJs
Customers with severe adverse credit

Client Case Studies

SDI Displays

Through Union Business Finance, SDI Displays acquired a £115,000 hire purchase facility for new industrial racking, spreading the cost over three years so they could put the racking to work immediately without depleting capital. The new storage improved handling, reduced bottlenecks and increased production throughput – helping the business scale to meet rising demand.

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Trades and Labourers Ltd

We assisted Trades and Labourers Ltd in securing a £7,625 hire purchase for a trailer on a three-year term, allowing the business to take immediate delivery while preserving cash for payroll and operations. The trailer improved on-site logistics and transport efficiency, enabling larger and more frequent deployments across multiple locations.

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How it works

Pre Screening

We’ll discuss your business needs, the asset you want to finance, and ensure you meet the basic hire purchase criteria.

Underwriting

Provide your financials and any supporting information so we can review eligibility and prepare a tailored HP proposal.

Approval

Your chosen lender reviews the proposal, approves the terms, and prepares the HP agreement for signing.

Paid out

Once you sign the agreement, the asset is financed, and the lender releases funds directly.

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Why Choose Union Business Finance?

Based in Hemel Hempstead, our team is dedicated to helping businesses secure the finance they need to grow. Here’s why so many companies choose to work with us:

Proven Experience

Over a decade of successfully guiding businesses to the right funding solutions

Trusted By Thousands

More than 4,000 businesses have relied on our expertise

Wide Lender Panel

Our brokers connect you with 100+ lenders to find the best fit

Industry Expertise

From retail to farming, we understand the unique financial needs of each industry

Tailored Support

We take time to understand your business, delivering solutions that work in practice

Access Vital Business Equipment With the Most Favourable Rates

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FAQs

How does hire purchase differ from asset finance?

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.

What deposit will I need?

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.

How long are hire purchase terms?

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

Who is responsible for maintenance and insurance?

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

What assets can be funded with hire purchase?

Common equipment acquired through hire purchase includes machinery, plant, IT equipment, commercial vehicles, and so on – the majority of business assets are eligible!

How quickly can I get funded?

Decision times vary by lender and documentation supplied – some HP deals can be approved and financed in days, whilst others take longer. We’ll outline this as soon as you’ve provided the lender with all the necessary documents.

What documents will lenders ask for?

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

Is hire purchase available for used equipment?

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

Business Hire Purchase

What Is Business Hire Purchase?

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