Do UK Business Loans assist with hire purchase (HP) for vehicles, plant or machinery?
Quick answer: Yes — UK Business Loans can connect your limited company or partnership with brokers and lenders who arrange hire purchase (HP) for vehicles, plant and machinery. We act as an introducer (we do not lend or provide regulated financial advice). Complete a Free Eligibility Check to receive tailored matches and no‑obligation quotes from specialist providers: Get Quote Now.
TL;DR — What this page covers
Summary: Hire purchase (HP) lets a business pay a deposit plus fixed instalments and take ownership at the end of the term. UK Business Loans does not provide HP itself — we match companies to lenders and brokers who specialise in vehicle, plant and machinery HP. We typically handle enquiries for transactions from £10,000 upwards. Use our Free Eligibility Check to get matched quickly and receive quotes without obligation: Free Eligibility Check.
- Definition and common uses of HP
- How we introduce you to HP lenders/brokers
- Who is eligible and when HP is the right choice
- Typical costs, VAT treatment and documentation
- How HP compares with leasing, asset loans and chattel mortgages
What is Hire Purchase (HP)?
Hire purchase is a type of asset finance commonly used by businesses to acquire vehicles, plant and machinery. Under HP you hire the asset from the funder, pay an initial deposit (often 10–30% depending on asset and credit), then make fixed monthly repayments for an agreed term. Ownership transfers to your business once the final payment is made (or after a nominal final payment if a balloon/residual amount applies).
Common HP uses:
- Vans, trucks and light commercial vehicles (fleet replacement)
- Construction plant: excavators, diggers, dumpers
- Agricultural machinery: tractors, combine harvesters
- Manufacturing or production machinery
Key characteristics:
- Deposit + fixed monthly repayments
- Ownership typically passes at final payment
- Asset is the funder’s property until purchase is complete
- VAT treatment depends on whether the business is VAT‑registered and the asset type
How UK Business Loans helps with HP
We are an introducer — we do not lend and we do not provide regulated financial advice. Our role is to match your company with lenders and brokers experienced in hire purchase for vehicles, plant and machinery.
What we do for you:
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
- Short, no‑obligation enquiry form (takes around 90–120 seconds).
- Match your business with lenders and brokers who specialise in commercial HP and asset finance for your sector.
- Arrange a free eligibility check and help you receive tailored quotes quickly.
Why use a match service?
- Saves time — we shortlist partners that suit your business profile and asset type.
- Access to specialist lenders for sectors such as transport, construction and agriculture.
- No charge to you for the introduction; no obligation to accept any offer.
Get Quote Now — complete the enquiry and we’ll connect you to the right providers.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Is hire purchase suitable for my business?
HP is usually a good fit where your business plans to own the asset at the end of the term and wants predictable monthly costs. Typical applicants are limited companies and registered partnerships seeking asset purchases over £10,000.
Typical lender considerations include:
- Company age and trading history
- Annual turnover and existing facilities
- Director credit history
- Type, age and condition of the asset (new vs used)
- Deposit amount you can provide
Quick self‑check — HP may suit you if:
- You want ownership at the end of the agreement
- You can manage a deposit and fixed monthly payments
- The asset has resale value if early settlement becomes necessary
Not sure? Get a free, no‑obligation assessment: Free Eligibility Check.
Typical HP costs and what to expect
HP costs vary by lender, asset and business profile. Typical cost components:
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
- Deposit — commonly 10–30% of the asset price
- Monthly repayments — principal + interest
- Interest / APR — quoted by lender, depends on risk and asset
- Arrangement or documentation fees
- Early settlement charges in some agreements
- Optional balloon/residual payment to reduce monthly cost
Illustrative example (indicative only):
Purchase price £30,000, deposit 15% (£4,500), term 48 months, illustrative APR 8% — monthly payments will depend on the exact APR and whether a balloon is used. These figures are examples; actual quotes vary by lender and business circumstances.
VAT: VAT-registered businesses may be able to reclaim VAT on the purchase depending on the arrangement and asset type. Specialist lenders and brokers can explain VAT treatment for your situation.
Important: UK Business Loans does not set rates or lend money — lenders provide offers based on their underwriting.
HP vs alternatives — how to choose
Common asset finance options to compare:
- Hire Purchase (HP) — ownership at end, fixed payments, deposit typically required.
- Finance lease / operating lease — lower upfront cost, often no ownership, good for short replacement cycles.
- Chattel mortgage — borrower owns from day one; lender registers a charge; may suit businesses wanting immediate ownership.
- Asset finance loan (secured/unsecured loan) — borrower owns asset from day one; loan secured against business or asset.
Which to pick?
- If you want to own the asset and prefer predictable payments — HP or chattel mortgage.
- If you upgrade frequently and don’t want ownership responsibilities — an operating lease.
- If you prefer immediate ownership and can secure a loan — an asset finance loan or chattel mortgage may be preferable.
Compare quotes from matched lenders/brokers to find the best solution: Compare and get a free quote.
How the HP process works — step by step
- Complete the UK Business Loans enquiry form (about 2 minutes).
- We match you with 1–3 specialist brokers or lenders suited to your asset and sector.
- A broker or lender contacts you to request documents and confirm details (asset invoice, company accounts, director ID, bank statements).
- The lender underwrites and issues an offer/quote; you review options and terms.
- Sign agreements, pay deposit, take delivery of the asset. Ownership transfers on final payment (unless different arrangements apply).
Typical documents required: business accounts (or management accounts), proof of company registration, director ID, pro‑forma invoice for the asset, recent bank statements, VAT registration (if applicable).
Turnaround: initial contact is often within hours during business times; formal offers can take a few days depending on checks and asset valuation.
Get Started — Free Eligibility Check
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Common questions
Will applying affect our credit score?
Submitting an enquiry through UK Business Loans does not affect your credit file. Lenders may perform soft or hard checks later if you proceed with a formal application.
Can businesses with poor credit obtain HP?
Some specialist lenders consider imperfect credit, but terms may include larger deposits, higher rates or guarantees. We’ll match you to partners experienced in such cases.
Can I finance used plant or older machinery?
Yes — many lenders finance used assets, but maximum term and rates depend on the asset’s age, condition and resale value.
What if I sell the asset before the HP term ends?
Most HP agreements require lender consent before sale and may require early settlement. Always check your contract and speak to your lender.
Mini case studies (example outcomes)
Haulage fleet replacement
A limited company needed five replacement delivery vans costing £150,000. Using a matched broker, the company arranged HP with a 20% deposit and a 48‑month term. The broker sourced three competitive quotes; the company selected the best fit and took delivery within five weeks.
Used digger for groundworks
A contractor purchased a used excavator for £45,000. A specialist lender offered HP with a 25% deposit and a 48‑month term. Ownership transferred after the final repayment; the contractor spread cost while preserving working capital.
Next steps — get a free, no‑obligation HP quote
If you’re considering hire purchase for vehicles, plant or machinery, the quickest way to proceed is to complete our short enquiry. We only handle enquiries for transactions of approximately £10,000 and above.
Ready to compare HP options? Complete the quick form and we’ll match you with lenders and brokers who specialise in your sector: Get Quote Now — Free Eligibility Check.
Your details are shared only with selected lenders and brokers who can help with your request. There’s no cost and no obligation to proceed once matched.
Legal & compliance
UK Business Loans acts as an introducer. We do not lend money and we do not provide regulated financial advice. We introduce enquiries to lenders and brokers who may offer hire purchase and other finance options. All finance offers are subject to the individual lender’s terms, lending criteria and credit checks.
Privacy: by submitting an enquiry you agree we may share your details with selected lenders and brokers. See our Privacy Policy and Terms & Conditions for full details.
1. Is UK Business Loans a lender or does it provide hire purchase (HP) directly?
– No — UK Business Loans is a free introducer that matches your business to brokers and FCA-regulated lenders who arrange hire purchase and other asset finance options.
2. How do I start an HP enquiry for vehicles, plant or machinery?
– Complete the short Free Eligibility Check/enquiry form (about 1–2 minutes) so we can match your company to specialist HP lenders or brokers — the form is an introduction, not a formal application.
3. Will submitting an enquiry affect our company or director credit score?
– No — submitting an enquiry through UK Business Loans does not affect your credit file, although lenders may run soft or hard checks later if you proceed with a formal application.
4. What finance amounts do you typically handle for hire purchase and asset finance?
– We typically handle transactions from around £10,000 upwards and can connect you to partners offering a wide range of commercial finance amounts.
5. Can businesses with limited trading history or poor credit get hire purchase?
– Possibly — some specialist lenders consider start-ups and businesses with imperfect credit but may require larger deposits, higher rates or additional security, and we’ll match you to those partners.
6. Can I finance used vehicles, plant or older machinery via HP?
– Yes — many lenders finance used assets, though acceptable age, maximum term and rates depend on the type, condition and resale value of the asset.
7. What typical costs should I expect with hire purchase (deposit, APR, fees)?
– Typical HP costs include a deposit (commonly 10–30% of the asset price), monthly repayments (principal plus interest/APR), arrangement/documentation fees and possible early-settlement charges or an optional balloon payment.
8. How is VAT treated on hire purchase for VAT-registered businesses?
– VAT-registered businesses may be able to reclaim VAT on the purchase depending on the asset and finance structure, so you should check with your lender or broker and your accountant for specific treatment.
9. How long does it usually take to get matched and receive HP quotes?
– Initial contact from matched lenders or brokers often happens within hours during business times, with formal HP offers typically taking a few days depending on documentation and underwriting.
10. What documents will lenders or brokers typically request for a hire purchase application?
– Lenders commonly request the asset pro‑forma invoice, company registration details, business accounts or management accounts, recent bank statements, director ID and VAT registration where applicable.