Hire Purchase

Hire Purchase is a repayment facility which can provide outright ownership to the customer. Once the term and repayment structure are decided, the monthly payments are fixed, giving the customer peace of mind and the ability to budget and plan ahead.

On payment of the option to purchase fee at the end of the agreement the customer can own the asset.

Hire Purchase

Hire Purchase

Monthly repayments with low cost option to purchase fee

  • £15k to £1m

  • Term 3-5 years
  • Soft and hard assets

How it works

We purchase the asset on behalf of the customer. We own the asset until the final instalment is paid, at which point the customer is given the option to buy it for a nominal sum.

  • Spread the cost of the asset over time, with the option to own it at the end of the term.
  • Fund up to 100% of the asset purchase price
  • VAT relating to the purchase price is payable upfront when entering into the agreement, and may be recoverable. VAT is not payable on the rentals.
  • At the end of the term and on payment of an option to purchase fee, the business can choose to keep using the asset or sell and replace/upgrade.

  • While the business doesn’t own the asset until the purchase option fee is paid, the business can treat the asset as a balance sheet item.

Benefits of Hire Purchase

Invest in new capability to create more value

Affordable access to advanced machinery

Protect working

No upfront

Match the amount borrowed to the useful life of the asset

Fixed regular payments over an agreed period


  • The asset must be for use in your customer’s business
  • The business must be based in England or Wales

Speak to our Business Development Manager

If you’re a commercial finance broker and want to discuss how we can help your clients with asset finance, contact us.

Katie Dowse

What our broker panel say

  • On a recent £200k facility that paid out, I was very impressed with the decision turnaround, clear route to completion and effectiveness of all staff involved.
  • Love the team, the process and the honest communication.
  • Very transparent, and willing to listen to ideas around structure, security etc.
  • I do enjoy the human aspect of the relationship when discussing a transaction.
  • I've always found the availability for a credit team member to be willing to visit a client in order to try and secure a facility with you, to be extremely refreshing and supportive in working together to get the same desired outcome.
  • Asset Advantage are very easy to deal with and will look to understand the customer.