Building services equipment finance: lease or hire purchase?

Short summary: Yes — many of UK Business Loans’ lender and broker partners arrange equipment leases as well as hire purchase for tools, vans and plant. Leases (operating or finance) let you rent equipment and often include maintenance and upgrades; hire purchase spreads the purchase cost with ownership transferring when the final payment is made. Which is better depends on asset type, how long you’ll use it and whether you want ownership or flexibility. For a free eligibility check and quick, no‑obligation quotes from partners that specialise in building services equipment finance (from around £10,000 and up), start here: Get Quote Now.

Short answer: Yes — many partners offer leases as well as hire purchase

UK Business Loans introduces building services businesses to lenders and brokers who commonly provide:

• Operating and finance equipment leases (rental-style agreements)
• Hire purchase (HP) agreements that end in ownership
• Contract hire and vehicle leasing with maintenance packages

We don’t lend directly. Completing our short enquiry gives partners the basic information they need to provide relevant lease and HP quotes. If you want to compare quickly, Get a free eligibility check and we’ll match you with specialists for your asset and sector.

Lease vs hire purchase — what’s the practical difference for building services firms?

Knowing the core differences makes it easier to compare proposals and pick the most cost‑effective option.

What an equipment lease (operating / finance lease) typically looks like

• You pay regular rentals to use the asset for an agreed term.
• At term end you usually return the asset, renew the lease or (sometimes) buy at a pre‑agreed residual value.
• Leases can include servicing, replacement and upgrades — attractive for tech or battery-powered tools that age fast.
• Leases preserve capital and provide predictable monthly costs.

What hire purchase means for tools, vans and plant

• HP spreads the purchase cost into monthly payments with ownership transferring after the final payment.
• Usually an initial deposit is taken and the lender retains security until ownership passes.
• HP is commonly used when you intend to own the asset and claim capital allowances.

Which option suits building services trades (electricians, HVAC, plumbing, etc.)?

Choice usually depends on asset value, turnover plans and how quickly the technology becomes obsolete.

Best for small tools and consumables

For low-value hand tools, battery packs and consumables, short rental or subscription models are often better than HP. Leasing or short-term rental gives flexibility if equipment gets lost or damaged on site.

Best for vans and on-road light commercial vehicles

Contract hire/operating lease is popular for vans — predictable monthly costs, optional maintenance and the ability to upgrade every few years. Choose HP if you want ownership and plan to keep the vehicle long-term.

Best for larger plant, scaffolding and specialist kit

For excavators, power washers, scaffolding or specialist diagnostic rigs both lease and HP are commonly available. Consider a lease (often finance lease) if you need maintenance bundled or short-term access; HP makes sense if long-term ownership and capital allowances are important.

Practical benefits & drawbacks (cashflow, tax and maintenance)

Cashflow and balance sheet effects

• Lease: preserves capital and usually gives predictable monthly outlay. Depending on accounting treatment and lease type, the asset may not sit on the balance sheet in the same way as HP.
• HP: treated more like a purchase on credit — asset and liability commonly appear on the balance sheet, with ownership transferring at the end.

VAT and tax considerations (summary — speak to your accountant)

VAT and tax treatment differ between leases and HP and depend on your VAT status and the product structure. Typical illustrations (high-level):

• HP: VAT is often due on the supply of the goods (dealer may charge up front or financier includes VAT in payments). VAT-registered businesses may reclaim VAT subject to normal rules.
• Leases: VAT is generally charged on the rental invoice. VAT recovery depends on business use of the asset.

This is a summary only — confirm exact tax treatment with your accountant before deciding.

Maintenance, upgrades and flexibility

Leases often include maintenance, servicing and replacement options — ideal where uptime and predictable operating costs matter. HP typically leaves maintenance to you, although maintenance contracts can be added.

How UK Business Loans helps you compare lease vs hire purchase

We match your business to brokers and lenders who specialise in trades and construction asset finance. Our partners can show both lease and HP quotations with clear comparisons of:

• Monthly payment vs total cost
• VAT treatment and residual values
• Maintenance inclusion and insurance options
• End-of-term options (return, purchase, upgrade)

To get matched quickly, tell us the asset, value and how you intend to use it. We commonly work with requests for sums from around £10,000 upwards. To begin, Get Quote Now — completing the enquiry is not an application; it simply helps us pair you with the right partners.

For additional information about sector-specific funding, see our building services industry page: building services business loans.

What lenders/brokers will ask for — how to prepare

Having the right information speeds up accurate quotes. Typical items to have ready:

• Company name and registration details
• Time in business and annual turnover
• Details of the asset: make, model, age, price (quote or invoice if available)
• Preferred term and estimated usage (hours/year or miles for vans)
• Whether you want maintenance, insurance or replacement included
• VAT status and whether you expect to reclaim VAT

Photos or supplier quotes help brokers assess used equipment finance quickly.

Quick checklist: Is a lease right for your job?

• Do you need predictable monthly costs? — Lease likely better
• Do you prefer to preserve capital? — Lease likely better
• Do you want maintenance and upgrades included? — Lease likely better
• Do you want to own the equipment at the end? — Hire purchase may be better
• Is the asset likely to become obsolete quickly? — Lease often better

FAQs

Do partners finance used tools and plant?

Yes. Many partners offer finance for new and used equipment — terms depend on age, condition and the type of asset.

Will an enquiry affect my business credit score?

No. Submitting an enquiry via UK Business Loans is not a formal application and will not affect your business credit score. Lenders or brokers may perform credit checks later if you decide to proceed with a product.

Can I include maintenance or insurance in a lease?

Often yes. Many lease agreements can be packaged with servicing, maintenance and insurance. Ask for these options in your enquiry to get like‑for‑like comparisons.

Final note & compliance disclaimer

UK Business Loans is an introducer that connects businesses with lenders and brokers. We do not provide loans directly and the information on this page is general in nature. It is not financial, legal or tax advice. For specific VAT, tax or accounting treatment speak to your accountant. Complete our short enquiry to receive tailored, no‑obligation quotations from partners who can advise on lease vs hire purchase for your exact situation: Free Eligibility Check.

Image suggestions for the page:

• Hero image: tradespeople with vans and tools on site — alt text: “Electrician and van with building services tools on site — equipment finance options”
• Icons: lease, hire purchase, maintenance — alt text describing each icon (e.g. “Icon: Lease agreement — equipment rental”)

Ready to compare lease vs hire purchase? Complete a short enquiry (takes under 2 minutes) and we’ll match you with partners who specialise in building services equipment finance. Get Quote Now — Free Eligibility Check.

1. What types of equipment finance are available for building services businesses?
– Our partners offer operating leases, finance leases, hire purchase (HP), contract hire and vehicle leasing for tools, vans and plant from around £10,000 upwards.

2. Lease vs hire purchase — which is better for my trade?
– Choose hire purchase if you want to own the asset and claim capital allowances, or a lease if you prefer predictable monthly costs, included maintenance and flexibility for fast‑obsolescing kit.

3. Can maintenance and insurance be included in a lease?
– Yes — many lease packages can be bundled with servicing, maintenance and insurance when you request those options in your enquiry.

4. Will submitting an enquiry affect my business credit score?
– No — completing UK Business Loans’ short, free enquiry is not a formal application and won’t affect your credit score, though individual lenders may perform checks later.

5. Do partners finance used tools, vans and specialist plant?
– Yes — many lenders and brokers finance both new and used equipment, with terms depending on age, condition and valuation.

6. How much can I borrow for equipment finance?
– Our network commonly provides asset finance from roughly £10,000 to multi‑million sums depending on the lender, asset type and business profile.

7. How quickly will I get quotes after I complete the free eligibility check?
– You can often receive initial responses and tailored quotes from matched brokers or lenders within hours of submitting the short enquiry.

8. What information should I prepare to get accurate lease or HP quotes?
– Have your company details, time in business, turnover, asset make/model/price or supplier quote, preferred term, estimated usage and VAT status ready to speed up accurate comparisons.

9. How is VAT treated on leases compared with hire purchase?
– VAT on HP is usually charged on the purchase and may be reclaimable by VAT‑registered businesses, while leases charge VAT on rental invoices and recovery depends on the asset’s business use, so check with your accountant.

10. What are my end‑of‑term options on an equipment lease?
– Most leases allow you to return, renew or sometimes buy the asset at an agreed residual value, giving flexibility to upgrade or replace kit at term end.