Ready to apply for Hire Purchase?

What is Business Hire Purchase?

Business Hire Purchase is a flexible and cash-flow friendly way to fund expensive items like equipment or vehicles without paying in full upfront.

You ‘hire’ the asset you need by making regular monthly payments over an agreed period of time. At the end of your hire purchase agreement, you have the option to ‘purchase’ the asset to own it.

 

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Let's talk about Hire Purchase

Lloyds Bank have been providing asset finance solutions for many years. We have a team of specialists on hand to ensure you get the right support and the help you need to choose the solution that is right for your business.

Apply now for Hire Purchase

Apply now for Hire Purchase

Existing Lloyds Bank customers can log on and apply online for Hire Purchase for assets between £15,000 and £150,000.

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How Hire Purchase can help your business

Fund up to 90%

Funding starts at £15,000 after a minimum deposit of 10%.

Choose what you need

Find the new or used equipment that works for your business and budget.

Flexible terms

Select any repayment period between 12 and 60 months to suit your business.

Monthly payments

Regular payments make it easier to budget and manage cash flow.

Repayment options

Fixed or variable rates available to suit your business.

Own your asset

Option to purchase fee at the end of the term gives you full ownership.

Calculate your repayments

Calculate your repayments

Use our illustrative calculator to understand the monthly cost for Business Hire Purchase.

Get started

Does your business qualify for Hire Purchase?

  • Available to new and existing Lloyds Bank customers
  • The asset must be for use in your business and less than 7 years old
  • Your turnover must be more than £100,000 per annum
  • You must have been trading for a minimum of 24 months and be UK-based.

What you’ll need to apply

  • Details of the asset you want to purchase
  • The cost of the asset
  • Your preferred term length and deposit amount
 

What can I finance using Business Hire Purchase?

  • Transportation
    Heavy Goods Vehicles (HGVs), buses and coaches, trailers, cars and vans.
  • Agriculture
    Tractors, combines, biomass, forestry, automation and livestock trailers.
  • Manufacturing
    Processing and packaging machinery, production lines, CNC and robotics.
  • Construction
    Construction equipment, diggers, bulldozers, drills and cranes.
  • Renewable
    Small scale renewables, solar panels, air source heating, biomass boilers, Combined Heat & Power (CHP).

How the Hire Purchase process works

1. Get a quote

Let us know what asset you want to fund and we’ll give you a tailored quote.

2. Tell us to go ahead

If you want to proceed, one of our specialists will provide a credit assessment and agreement.

3. Collect your asset

We’ll pay your supplier, within 15 days for some assets, and you can collect your asset.

Frequently asked questions

  • Hire Purchase, or HP, is one form of asset finance that helps you fund a new asset and ends with you owning it outright. In simple terms HP works like this:

    You find the asset you want, pay us a 10% deposit, we then buy the asset on your behalf and “hire” it to you over an agreed term, usually between 12 and 60 months, and charge you monthly “rentals” that cover the remaining cost and the interest on the amount borrowed.

    When you have settled the total outstanding you pay a small “option to purchase” fee and we transfer the asset to your ownership.

    So, you hire it first and purchase it at the end, hence the name Hire Purchase.

  • Yes, you can but you may need to pay early repayment charges. You can speak to one of our specialists to find out more.

  • As above, you can cancel your agreement but early repayment charges may apply. You can speak to one of our specialists to find out more.

  • Pricing is tailored on the asset you want to buy or lease.

More from Asset Finance

How Asset Finance can help you grow

We explain what Asset Finance is, and how you can use it to finance vehicles or equipment that can help grow your operations.

Read the guide

How to grow your business

To grow a resilient business that’s around for the long term, you must plan for sustainable growth. That means understanding the current situation and having a vision for the future.

Read the guide

Annual Investment Allowance

The Annual Investment Allowance (AIA) is a regular capital allowance which applies to purchased assets that are used and kept within a business. Some or all of the asset’s value can then be deducted from profits before tax is applied. The AIA limit is currently set at £1,000,000.

Annual Investment Allowance (PDF, 130KB)

Manage your existing Hire Purchase agreement

You may need to make changes throughout the life of your Hire Purchase agreement.

Find out how to make a change if you need to.

How to make a change (PDF, 117KB)

Other borrowing options

Whether you're an established business or just starting out, finding the right finance product can be difficult.

Compare and choose our products, whatever your business circumstances.

View all borrowing

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Important Legal Information

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.

Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

We adhere to The Standards of Lending Practice which are monitored and enforced by the LSB: www.lendingstandardsboard.org.uk.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.