Question 1

Who is Capitalise?

Accepted Answer

Capitalise is an FCA-regulated platform built to support UK businesses in taking control of their financial health. We make it easy for business owners to access funding by connecting them with over 130 trusted UK lenders. Our intelligent platform matches you with lenders based on your business needs and ranks options based on past success rates - helping you make confident, informed decisions. When you apply through Capitalise, you're not alone. Every application is supported by a dedicated funding specialist who will: Guide you through your funding options Help prepare and package your application Explain the terms of any offers you receive With Capitalise, you can compare offers side by side and secure the best funding solution for your business with expert support at every step.

Question 2

What is the difference between business contract hire and hire purchase?

Accepted Answer

The key difference between business contract hire and hire purchase is the ownership of the vehicle. You won’t retain ownership of the vehicle in a contract hire agreement, instead you’ll make monthly payments to lease it. Whereas in a hire purchase agreement, your business will own the vehicle. You’ll be responsible for all maintenance costs in a hire purchase agreement, but you’ll also have more flexibility. For example you could customise the vehicle as you own it.

Question 3

Does hire purchase mean you own the asset?

Accepted Answer

You won’t immediately own the asset with hire purchase. Your business is essentially renting the asset until it's paid off the entire amount agreed upon. Once all payments, including any possible final lump sum (often called a balloon payment), are made, the ownership of the asset transfers from the lender to your business.

Question 4

What happens at the end of a hire purchase agreement?

Accepted Answer

At the end of a hire purchase agreement, your business typically makes a final payment, which might be higher than your regular monthly payments. Once this is completed, the asset becomes the business’. In some agreements, you might also have the option to return the asset if it is no longer needed.

Question 5

Can you end your hire purchase agreement early?

Accepted Answer

You may be able to settle a hire purchase agreement early by paying off the outstanding balance and any additional fees required for early termination. This can be a good option if your business wants to own the asset sooner or if you need to exit the agreement for financial reasons. However each lender is different. Whether you’ll be able to repay early will be detailed in your specific agreement.

Question 6

How much will I pay each month with hire purchase?

Accepted Answer

Monthly payments depend on several factors: the total price of the asset, the amount of deposit put down, the length of the term, and the interest rate. Payments are typically fixed, which means they won’t change over the duration of the agreement, making it easier for your business to budget.

Question 7

Hire purchase vs leasing: What is the difference?

Accepted Answer

Both hire purchase and leasing are options for acquiring assets like company cars or vans. Understanding the key differences between these two financing methods can help you make an informed decision. Ownership: with hire purchase, you'll own the asset eventually; with leasing, you won't. Payments: hire purchase pays off the full value; leasing pays for the use. Depreciation: hire purchase bears risk; leasing often shifts it to the lessor. Flexibility: leasing often provides more flexibility in terms of contract duration and end-of-term options, including renewing the lease, returning the asset, or purchasing it at a predetermined price. Choosing between hire purchase and leasing will depend on your business’s financial goals, how frequently you intend to upgrade assets, and your preference regarding asset ownership. You can find out more about the difference between the two in our article, hire purchase vs leasing .

Deposit	Set by the lender, based on the asset and your business's credit profile
Term	Agreed with the lender, usually in line with the asset's useful life
Monthly payments	Fixed for the whole term, covering the remaining balance, interest and the lender's charges
VAT	Usually due upfront on the full price, since hire purchase is treated as a single supply of goods
Ownership	Transfers to your business once the final payment is made

Financing option	Ownership	Monthly payments	Ideal for	End of term options
Asset finance (loan)	Full ownership from the start	Varies based on loan terms and interest rates	Businesses looking to own assets outright while spreading the cost	Complete payments and retain ownership
Operating lease	No ownership, the asset is returned	Lower, covers only asset use	Businesses needing short term or specialised equipment	Return, extend the lease, or upgrade
Finance lease	No immediate ownership, there is an option to buy later	Higher, aims to cover full asset value	Businesses wanting to spread the cost and potentially own the equipment	Buy the asset, extend the lease, or return
Contract hire	No ownership, includes services like maintenance	Fixed, includes maintenance costs	Businesses needing fixed-term vehicles or equipment with maintenance	Return the asset, potential penalties for excess use
Hire purchase	Ownership transferred after final payment	Higher, contributes towards ownership	Businesses aiming for ownership with a predictable payment plan	Own the asset outright, or sell it back

Business hire purchase

Why get contract hire with Capitalise?

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What is hire purchase?

How does hire purchase work?

Why choose hire purchase for your business?

Own the asset outright

Claim capital allowances from day one

Fixed, predictable payments

How much does hire purchase cost?

Which assets can you finance with hire purchase?

Vehicles

Plant and machinery

Office and IT equipment

What are the alternatives to hire purchase?

Tips to help lower your monthly payments

Am I eligible for hire purchase?

What documents do you need for hire purchase?

How do I apply for hire purchase?

Tell us what you need

Complete your application

Get matched and funded

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