Hire Purchase
Hire Purchase is a repayment facility for business equipment and machinery 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. This makes it a cost-effective way to secure access to equipment and machinery, which can drive business growth. Find out more about our machinery and equipment hire purchase product.
Hire Purchase
Hire Purchase lets you spread the cost of an asset over time, with ownership transferring to you for a small final fee once the last payment is made.
Facilities from £75k - £500k
3-5 year terms
Soft assets
Hard assets
How Business Hire Purchase Works
We purchase the asset on behalf of the customer as part of the business hire purchase. 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 with business hire purchase
- 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 in the business hire purchase/equipment hire purchase agreement as a balance sheet item.
Benefits of Hire Purchase
Our business hire purchase and equipment hire purchase product offers a range of benefits to businesses and SMEs. It helps businesses invest in new high specification equipment and machinery, without incurring high upfront costs. This provides affordable access to what businesses need to drive growth, while protecting their cashflow and working capital. Discover some of the key benefits of business hire purchase below.
Invest in new capability to create more value
Affordable access to advanced machinery
Protect working
capital
Requirements
- The asset must be for use in your customer’s business
- The business must be based in England or Wales
How to Apply
Approved members of the Asset Advantage Broker Panel can email: [email protected]
Direct customers can contact:
William Thompson
Email: [email protected]
Tel: 07345 416 852
Case Studies
- CapEx Term Loan
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“In 40 years of working for banks, and subsequently setting up my own brokerage, I have never met such flexibility or willingness to listen. It was a complex deal, and at every juncture you found a solution. This is exceptional service.”Term:3 YearsPurpose:AV Equipment For Commercial Property - CapEx Term Loan
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"£400,000 delivered as a blend of loan and finance lease on a 5 year term".Term:5 YearsPurpose:Fit Out Of New Start Gym - CapEx Term Loan
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“Asset Advantage offer the best rates for new starts. By bringing the deal to Asset Advantage, the client was able to get the whole deal funded.”Term:5 YearsPurpose:6 Glamping Pods - CapEx Term Loan
Amount Financed
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"For this deal, rate was key. Asset Advantage have great rates for new starts, and having the agreement on a 5-year term meant affordable repayments for the customer."Term:5 YearsPurpose:Fit-Out & Furniture For New Start Sign-Making Franchise - Finance Lease
Amount Financed
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“I like Asset Advantage because they are really commercial. They don’t just look at the net worth of the company, but the people behind it, and they paint a picture of how viable it might be in the future.”Term:5 YearsPurpose:Finance Lease For New Ice-Cream Kiosk - Finance Lease
Amount Financed
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“A known business model to Asset Advantage combined with very experienced owners, led to an approval on this deal.”Term:5 YearsPurpose:Finance Lease For Horse Water Treadmill And Cold Water Spa System - Finance Lease
Amount Financed
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“A dog grooming and hydrotherapy business is a different type of industry, but I knew Asset Advantage would take the time to consider the proposal thoroughly.”Term:5 YearsPurpose:Hydrotherapy Unit For Dog Hydrotherapy Business - Finance Lease
Amount Financed
£0
“Not many other funders would offer a 5 year term on a used piece of equipment, but Asset Advantage look beyond the asset itself and base their decision-making on the customer profile, and an understanding of what that equipment would generate for the business.”Term:5 YearsPurpose:Finance Lease For Used Laser Machine For Beauty Salon - CapEx Term Loan
Amount Financed
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“Asset Advantage always take a commercial view, which is great… the fact that this was a New Start business would have ruled it out for many funders.”Term:5 YearsPurpose:Business Loan For New Start Jewellers Secure Shop Front - Business Acquisition Loan
Amount Financed
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"With Asset Advantage, you have the confidence and certainty that if they say they’ll do it, they’ll do it.”Term:5 YearsPurpose:Business Acquisition Loan To A Growing Security Systems Company - Business Acquisition Loan
Amount Financed
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“Asset Advantage really like expansions and business purchases where it makes sense. Asset Advantage have a low rate for soft assets and business acquisitions which was a big driver too."Term:5 YearsPurpose:Business Acquisition Loan For Trampoline Park And Soft Play Business - CapEx Term Loan
Amount Financed
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“This deal shows exactly why Asset Advantage is a brilliant funder... they massively supported the funding line, and showed great flexibility with combining a loan and asset finance to fully support the fit-out project."Term:5 YearsPurpose:Business Loan And Hire Purchase For Fit-Out Of High-End Cocktail Bar - Hire Purchase
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Even though the equipment requirement was a high advance for a new company, there was a good story to the deal.Term:5 YearsPurpose:Hire Purchase For 12 BBL Brewhouse - Hire Purchase
Amount Financed
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"Industrial Racking can be a trickier asset class, and not every lender has the appetite to fund it, but this is in the sweet spot for Asset Advantage."Term:3 YearsPurpose:Hire Purchase For Industrial Racking - Finance Lease
Amount Financed
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"A comprehensive and well thought out business plan from a New-Start customer who had experience in the print sector."Term:5 YearsPurpose:Finance Lease – Printing Equipment For New-Start Business
Contact Jonty Cooke, Broker Manager
