Business finance from £10,000 to £2 million — any sector

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Asset & Equipment Finance

Hire Purchase

Own the asset outright at the end of the agreement while paying for it in fixed monthly instalments.

Amount
£10,000 – £2m
Term
1–5 years
Decision
Within hours
Get a quote 020 8004 9727

What is business hire purchase?

Business hire purchase (HP) spreads the cost of an asset into fixed monthly payments, usually after a deposit. You use the asset from day one and own it outright once the final payment — often with a small option-to-purchase fee — has been made. Terms typically run from one to five years.

Last reviewed · PFC Commercial Finance

Key features

  • Ownership transfers on the final payment
  • Claim capital allowances from day one
  • Deposit options to suit your cash flow
  • New and used assets considered

How it works

Tell us about your business and what you need. Your dedicated account manager compares hire purchase options from across our lending panel, prepares the application on your behalf and presents a clear, no-obligation quote. There is no impact on your credit score until you choose to proceed.

Who is it for?

UK limited companies, partnerships and sole traders in almost every sector — from start-ups to established businesses, including those with a less-than-perfect credit history.

Hire Purchase: common questions

Who owns the asset during a hire purchase agreement?

The funder owns it until the last payment is made; ownership then passes to your business. You are responsible for insuring and maintaining it throughout.

Can I claim capital allowances on hire purchase?

In most cases, yes — because your business is treated as the owner for tax purposes, it may be able to claim capital allowances from the start. Check the treatment with your accountant.

How is VAT handled on hire purchase?

VAT is usually payable upfront on the full purchase price, often alongside the deposit. VAT-registered businesses can normally reclaim it in their next return. Some funders can defer the VAT for a few months.

Can I settle a hire purchase agreement early?

Usually, yes. Most agreements allow early settlement, sometimes with a rebate of future interest. Your account manager can request a settlement figure.

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Figures are illustrative only and are not a quote or an offer of finance. Actual rates depend on your circumstances, the lender and the product. Finance is subject to status and available to UK businesses only.

Asset & Equipment Finance

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