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Asset finance — hire purchase

Hire purchase spreads the cost of an asset — equipment, machinery or a vehicle — over fixed instalments, and you own it outright once the final payment is made. The asset itself is usually the security, so rates are often keener than a general loan.

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Who it suits

Buying equipment, machinery or vehicles

Businesses that want to own the asset at the end

Spreading a capital purchase over its useful life

Pros

Often cheaper than an unsecured loan

You own the asset outright at the end

Preserves working capital

Worth knowing

The asset can be repossessed on default

A deposit is often required

Typical terms

Amount

Tied to the asset value

Term

1 – 7 years (asset-dependent)

Security

Secured on the asset being financed

Ownership

Yours at the end of the term

Indicative only — actual terms depend on the lender and your circumstances.

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Related facilities

Frequently asked questions

Do I own the asset with hire purchase?

Yes — once you've made all the payments, ownership transfers to you. During the term the lender retains an interest in the asset as security.

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Start your application now — it's free, takes minutes, and there's no credit check to view your options.

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