Hire Purchase

Need it now? Pay for it later. Spread the cost of business assets with fixed monthly payments and full ownership at the end.

Fund assets without emptying your bank account.

Need new vehicles, machinery, or equipment but cash is tight? Hire purchase spreads the cost into manageable monthly payments. You use the asset from day one, make regular payments over time, and once you’ve paid the final instalment, it’s yours.

We’ve secured over £100 million in funding for UK SMEs, with approval rates above 80% and funding in as little as 28 minutes. If hire purchase is the right route, we’ll help you get it over the line quickly.

What is hire purchase?

Hire purchase is a way to buy business assets, such as vehicles, machinery, and equipment, without paying the full cost upfront. You pay a deposit, then spread the rest over fixed monthly instalments. Once you’ve made the final payment, the asset is yours.

The lender buys the asset and hires it to you until you’ve paid it off. You get immediate use of the equipment, preserve your working capital, and build toward ownership with every payment.

Most hire purchase agreements run between two and five years, though longer terms are available for big-ticket items. Rates and terms depend on the asset, your trading history, and how much deposit you put down. Before you commit, read our guide to the advantages and disadvantages of hire purchase.

What can you finance with hire purchase?

Hire purchase works for almost any business asset you can think of. If it’s got a clear value and a useful lifespan, it can probably be funded this way.

Vehicles are the most common. This includes anything your business drives or operates, like vans, trucks, cars, forklifts, and plant machinery. You can finance new or used, and from dealers or private sellers.
Commercial equipment covers everything from kitchen fit-outs and gym equipment to manufacturing machinery and printing presses.
IT and office equipment like servers, computers, phone systems, and printers. Tech depreciates fast, but hire purchase lets you own it outright rather than renting indefinitely.
Construction and plant machinery includes diggers, excavators, scaffolding, and cranes. Big costs, long useful lives, and clear resale value make these ideal for hire purchase.

The key is that the asset holds value and can be used as security. Lenders are usually happy to fund anything that fits that description.

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How does hire purchase work?

You choose the asset you need and apply for funding. We’ll look at your business details and match you with lenders who suit your situation.

Once approved, you’ll pay a deposit (often 10 to 20%, or sometimes just the VAT amount) and agree on a repayment term. The lender buys the asset, and you start using it immediately while making fixed monthly payments.

The asset stays in the lender’s name until you’ve made all the payments. At the end of the term, you pay a small option to purchase fee (usually around £100), and ownership transfers to you.

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Is hire purchase right for your business?

Hire purchase makes sense if you need an asset now but don’t want to drain your cash reserves. It works well for businesses that want to own equipment long term and prefer predictable, fixed monthly costs. It’s a good fit if you’re buying vehicles, machinery, or equipment with a long working life.

Hire purchase might not be the best option if you need to upgrade equipment frequently or want the flexibility to hand assets back. In that case, leasing could be a better option. Check out our guide on the difference between hire purchase and leasing to compare.

Compare hire purchase and leasing

How to apply for hire purchase

Applying for hire purchase is straightforward. Tell us what you’re looking to finance and a bit about your business. We’ll ask about your trading history, monthly turnover, and the asset you want to fund.

From there, we’ll match you with lenders who understand your sector and offer competitive rates. Most businesses get a decision within 24 hours, and once approved, funding moves quickly.

Let's get you funded

Hire purchase makes it easier to manage cash flow while growing your business

Kevin

Greenwood Capital were professional from the start and delivered exactly what we were looking for. Communication was first class and from our first call to funds arriving in the bank the whole process only took 4 working days.

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Frequently asked questions

We’ve answered some of the most common hire purchase questions below.

Can you pay off hire purchase early?

Yes. Most hire purchase agreements let you settle early, though you may face an early settlement fee. The exact cost depends on your lender and how much of the term remains. Some charge a percentage of the outstanding balance, others a fixed fee. If you're thinking about paying off early, ask for a settlement figure from your lender and weigh it against the interest you'd save. In many cases, it still works out cheaper than running the full term.
Why would you use hire purchase?

Hire purchase makes sense when you want to own an asset outright but can't or don't want to pay for it upfront. It spreads the cost into fixed monthly payments, protects your cash flow, and gives you immediate use of the equipment.
Is hire purchase a good option for cars?

It can be. Hire purchase is one of the most popular ways to finance business vehicles in the UK. You get the car from day one, make fixed payments over two to five years, and own it at the end. It works well if you plan to keep the vehicle long term and want the flexibility to sell or trade it in later.

Get the equipment. Keep the cash.

Ready to fund your next vehicle, machine, or piece of equipment? We’ll match you with lenders who understand your business and offer rates that work. Get in touch or start your application using the form at the top of the page.

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