Find out what it is and how it could help push your business forward

Hire Purchase

What is Hire Purchase?

Hire Purchase is a flexible finance option which allows a business to aquire assets (such as vehicles, machinery or equipment) through paying agreed monthly instalments with the option to purchase the asset at the end of the agreement. You don’t own the asset until you have paid in full.​

  • Fixed and variable rate options available
  • Spread the cost of expensive assets.
  • Find your own asset.
  • Choose the payment term, from 12 to 84 months.
  • No arrangement fee to pay when you apply online.

If you're a Sole Trader or Partnership of 2 or 3 partners borrowing up to £25,000.00, or a private individual borrowing any amount, your agreement will be regulated by the Consumer Credit Act (1974). This means you'll have a Fixed Rate Regulated Conditional Sale agreement.  Check out our factsheets for more information Fixed Rate Conditional Sale (PDF, 274KB)Fixed Rate Hire Purchase (PDF, 181KB), Variable Rate Hire Purchase (PDF, 215KB).

Fixed Rate

  • Applicable to Hire Purchase and Conditional Sale agreements​
  • The interest rate stays the same throughout the agreement, so you always know how much you’ll pay back​
  • The stability of a fixed rate could make it easier to manage your cash flow and business costs​
  • You may pay additional charges for settling early​
  • You can apply online​

Variable Rate

  • Applicable to Hire Purchase agreements only​
  • The interest rate may vary as it changes in line with the Bank of England​ Base Rate
  • As a more flexible option, your monthly repayments may go up and down​
  • You won't pay additional charges for settling early​
  • Contact us to obtain a quote​

Frequently asked questions

Steps to apply for Fixed Rate Hire Purchase online

Start your quote

You’ll need to provide details about the asset you want and your business, and we’ll give you an instant quote. The form takes around five minutes. 

Apply and get a decision

Once you've completed your application online we’ll perform a credit search and let you know instantly if you’ve been approved. 

Receive your asset

Once everything has been approved your date for receipt of the asset will be arranged with you.​

Use our Eligibility Checker

Try our Eligibility Checker to find out whether you’re likely to be accepted for finance before you apply. It only takes a few minutes and it won't impact your credit score.

Try our Fixed Rate Hire Purchase calculator

For a quick estimate of your borrowing costs and what your monthly repayments could be try our calculator. It could help you get a clearer idea of your options.

Not sure Hire Purchase is for you? Look at our other asset finance options

We offer a wide range of financing options including Hire Purchase, business Contract Hire, Chattel Loan Mortgage, Lease, Residual Value.

Get in touch with us today

Our expert team are here to help, Monday to Friday 9am to 5pm. The quickest way to get help is to start a live chat.

Contact us

Whether it is to arrange additional finance or a general query, our team is here to help.

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Our simple forms allow you to quickly and easily manage your account details.