Asset finance – hire purchase
Hire purchase spreads the cost of an asset (equipment, machinery or a vehicle) over fixed instalments, and you own it outright once the final payment is made. The asset itself is usually the security, so rates are often keener than a general loan.
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Amount
Tied to the asset value
Term
1 – 7 years (asset-dependent)
Security
Secured on the asset being financed
Ownership
Yours at the end of the term
Who it suits
Buying equipment, machinery or vehicles
Businesses that want to own the asset at the end
Spreading a capital purchase over its useful life
Pros
Often cheaper than an unsecured loan
You own the asset outright at the end
Preserves working capital
Worth knowing
The asset can be repossessed on default
A deposit is often required
What it costs you
Indicative only. Actual terms depend on the lender and your circumstances. The calculator shows monthly repayments across the ranges above.
Related facilities
Frequently asked questions
Do I own the asset with hire purchase?
Yes, once you've made all the payments, ownership transfers to you. During the term the lender retains an interest in the asset as security.
See what you qualify for
Start your application now. It's free, takes minutes, and there's no credit check to view your options.