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Standard hire purchase for equipment is typically aimed at limited companies, LLPs or sole traders with trading history, though lender criteria can vary. The lender looks for an asset that is suitable and identifiable, then assesses affordability based on your accounts and ability to meet monthly payments. Pricing is often shown as a rate or representative APR, and the outcome depends on factors like deposit, term length and asset age. Deposits may be requested for higher-risk profiles or higher advances.

Vehicle hire purchase supports businesses where transport directly supports revenue. To proceed, your business must declare business use, meet the lender’s credit and affordability assessment, and provide the vehicle details needed for underwriting. Vehicle criteria can include age and value, and deposits may be required depending on risk. Typical pricing for SME HP is often expressed around 6% to 15% APR equivalent, influenced by the term, deposit and vehicle risk profile. Ownership typically transfers at the end of the agreement subject to conditions.

Dealer-arranged hire purchase can help reduce admin when you are buying from an approved channel. Eligibility is usually based on standard trading and credit or affordability checks, plus confirmation that the asset or vehicle meets lender requirements. The dealer provides quote and documentation, and your business completes an application or consent pack for the lender to run underwriting. Terms are often 24 to 72 months depending on the deal, and decisions are commonly reached within 1 to 5 working days once the lender has the required information.