F
Hire Purchase (HP)
Spread the cost of buying equipment or vehicles with fixed monthly payments. You own the asset outright at the end of the term.
Key Features
- You own the asset at end of term
- Fixed monthly repayments
- Optional balloon payment
- Tax allowances available
Eligibility
- UK registered business
- Asset identified for purchase
- Deposit typically 10–20%
- Trading history beneficial
Typical Use Cases
Buy machinery
Purchase vehicles
Acquire equipment
Spread cost over asset life
Want to estimate the numbers?
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Frequently Asked Questions
Do I own the equipment?
Yes, with hire purchase you take ownership of the asset at the end of the agreement after making all payments.
Can I claim capital allowances?
Yes, under HP you can typically claim capital allowances on the asset, which can reduce your tax bill.