Short answer: do our partners offer hire purchase for tractors?

Short answer: Yes. UK Business Loans introduces businesses to specialist brokers and lenders who routinely arrange hire purchase (HP) for agricultural machinery — including tractors, combines, balers and telehandlers. Our partners can provide finance for new purchases and many used machines, with deals tailored to business size, VAT status and cashflow. If you want to explore options, start with a free eligibility check and we’ll match you quickly: Free Eligibility Check.

What is hire purchase for farm equipment?

Hire purchase explained (how HP works)

Hire purchase is a form of asset finance where the finance provider buys the equipment and you pay it off in fixed instalments over an agreed term. You normally pay an initial deposit, then monthly repayments that cover capital and interest. Ownership passes to your business once all payments (including any final option payment) are completed.

HP vs other funding types (quick comparison)

• HP: Fixed term, option to own at the end, often treated as capital asset for accounting.
• Finance lease: You don’t own the equipment; leasing often suits businesses wanting regular upgrades.
• Chattel mortgage: Lender lends against the asset; you own it from the outset but the asset is security.

Example: A new tractor priced at £60,000 with a 10% deposit (£6,000) on a 5‑year HP agreement would have monthly repayments that clear the remaining balance plus interest — ownership transfers after the final payment.

Which UK Business Loans partners provide HP for tractors and agricultural machinery?

We work with a wide panel of specialist providers including:

• Specialist agricultural lenders who focus on farm equipment.
• Asset finance brokers who compare multiple funders to find competitive HP packages.
• Independent funders and regional banks with dedicated agriculture desks.

These partners handle new and many used purchases, single units and multi‑unit fleet deals. They can arrange HP for manufacturers’ new tractors, dealer stock and established used machines (subject to age and condition checks). For more detail on the types of asset funding available, see our asset finance overview on asset finance.

Get matched to an agricultural finance specialist — free, no obligation.

Typical eligibility & what lenders look for

Below are the common criteria asset finance providers expect. These are typical — individual lenders set their own thresholds.

• Business type: Limited companies, partnerships and LLPs (we do not publish sole trader processing here).
• Minimum loan/value: Our partners typically arrange finance from around £10,000 upwards — ideal for tractors and larger machinery.
• Trading history: Many lenders prefer 6–12 months trading history for established businesses; some specialist funders will consider newer businesses with strong trading projections.
• Credit profile: Standard credit history accepted by many lenders; specialist options exist for adverse credit.
• Asset specifics: Age, make, model and condition of machinery matter — older used items may require inspection or have shorter terms.

Checklist — documents to prepare:

• Equipment quote or pro‑forma invoice from supplier/dealer.
• Latest company accounts (or management accounts if year‑end pending).
• ID and details for company directors.
• Brief cashflow forecast or bank statements.
• VAT status of the purchase (VAT‑able assets affect monthly cost calculations).

Typical deal structure, deposit, terms, tax & ownership notes

Here’s what to expect on a typical tractor hire purchase deal:

• Deposits: Often 0–30% of the purchase price. Exact deposit depends on the lender, credit profile and whether the asset is new or used.
• Terms: Commonly 24–72 months. Agricultural equipment is often financed over 3–6 years depending on expected life.
• Interest & charges: Rates vary widely by lender and risk profile — get tailored quotes to compare effective annual cost.
• Balloon payments: Some deals include a final balloon to reduce monthly cost; you can pay it, refinance it or surrender the asset depending on your agreement.
• Tax & accounting: Hire purchase is usually treated as acquiring a capital asset — you may be able to claim capital allowances. This is not tax advice; consult your accountant for treatment specific to your business.

Simple worked example

Purchase price: £60,000 • Deposit 10% = £6,000 • Amount financed = £54,000 • Term = 60 months • (Interest rate varies)

Monthly repayments will reflect interest plus capital — ask your broker for a personalised repayment schedule. Want a tailored example for your farm? Start your enquiry.

Alternatives to hire purchase for agricultural equipment

If HP isn’t the best fit, partners may suggest alternatives:

• Finance lease / operating lease: Lower monthly cost, no ownership at end — good if you prefer regular upgrades.
• HP with a balloon: Lower monthly payments with a final larger payment to own or refinance.
• Chattel mortgage: You own the asset immediately and the lender takes a charge.
• Asset refinance: Release equity from owned machinery.
• Commercial loan: Useful if combining equipment purchase with other investments.

Not sure which is right? Our partners will explain options and costs so you can choose the most appropriate route. Free Eligibility Check.

How UK Business Loans connects you with the right lender or broker

Our process is simple and focused on speed and match accuracy:

1. Complete a short enquiry form (basic business details, equipment, finance amount). This is not an application — it’s information to help us match you.
2. We match you to the most relevant lenders and brokers in our panel who specialise in agricultural asset finance.
3. One or more partners contacts you to discuss options and provide tailored quotes.
4. You compare offers and proceed directly with the lender or broker you choose.

Introductions by UK Business Loans are free and no obligation — lenders or brokers will explain fees, APRs and terms before you commit. Start your quick enquiry here: Get Started Free Eligibility Check.

Frequently asked questions

Can I get hire purchase for used tractors?

Yes. Many lenders finance used machinery, though age and condition affect terms, maximum term length and rates. Some providers set a maximum age at the end of the agreement.

How much deposit will I need?

Deposits commonly range from 0–30% depending on lender, credit risk and whether the machine is new or used.

Does an enquiry affect my credit score?

Submitting our enquiry form is an information request and does not affect your credit score. Lenders may perform checks later with your consent.

Are there finance options for fleets?

Yes — brokers and lenders can structure fleet finance for multiple machines, often giving more competitive terms for larger packages.

What paperwork will I need?

Typical documents: equipment quote, company accounts or management accounts, ID for directors, VAT registration (if applicable) and recent bank statements.

How quickly will I get quotes?

Many partners contact businesses within hours during business hours. Complex or bespoke cases may take longer; we strive for fast matches.

Important compliance & data information

UK Business Loans is an introducer that connects businesses with lenders and brokers — we are not a lender and do not provide regulated financial advice. Completing our enquiry form is free and helps us match you with suitable providers; it is not a loan application. You will be contacted by third‑party lenders or brokers who may provide regulated advice or perform credit checks if you decide to proceed. By submitting your details you consent to us sharing them with selected partners for the purpose of obtaining finance quotes. For details on how we handle data, please see our privacy policy.

Ready to see if hire purchase is right for your farm?

Get personalised quotes from specialist agricultural lenders and brokers. It takes less than 2 minutes to complete our enquiry and it won’t affect your credit score. Our partners commonly place deals from £10,000 and up — Get Quote Now.