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Flexible finance for the assets you need

Hire Purchase

What is Hire Purchase?

Hire Purchase allows businesses to hire assets (like vehicles, machinery or equipment) by paying monthly instalments, with the option to purchase the asset at the end of the agreement. You don’t own the asset until you have paid in full.​

  • Fixed and variable rate options available
  • Spread the cost of expensive assets
  • Reduce monthly payments by opting for a final lump sum
  • Choose the payment term, from 12 to 84 months
  • No arrangement fee to pay when you apply online

If you're a Sole Trader or Partnership of 2 or 3 partners looking to borrow £25k or less, or a private individual borrowing any amount, you'll only be eligible for a Fixed Rate Conditional Sale. It gives you extra consumer protection. Check out the factsheet or FAQ below.

Fixed Rate

  • Applicable to Hire Purchase and Conditional Sale agreements​
  • The interest rate stays the same throughout the agreement, so you always know how much you’ll pay back​
  • The stability of a fixed rate could make it easier to manage your cash flow and business costs​
  • You may pay additional charges for settling early​
  • View factsheets: Fixed Rate Conditional Sale (PDF, 111KB)Fixed Rate Hire Purchase (PDF, 127KB)

 


Variable Rate

  • Applicable to Hire Purchase agreements only​
  • The interest rate may vary as it changes in line with the Bank of England​ Base Rate
  • As a more flexible option, your monthly repayments may go up and down​
  • You won't pay additional charges for settling early​
  • Contact us by live chat or phone to apply
  • View factsheet: Variable Rate Hire Purchase (PDF, 128KB)

Which option could work best for your business?

Explore your options by answering four quick questions.

Do you want to own the asset (once all payments have been made)?
What type of business are you?
How much do you want to borrow?

Fixed Rate Conditional Sale

If you're a Sole Trader or unincorporated business (with 2 or 3 partners) looking to borrow £25,000 or less, our Fixed Rate Conditional Sale could be the best fit.

  • At the end of the agreement, once all payments have been made, you’ll own the asset.
  • The interest rate and your repayments won’t change.
  • Fees may apply if you choose to make changes to your repayment plan or settle your agreement early.


For more info, read our product factsheet.

Which statement best describes your financing needs?

Fixed Rate Hire Purchase

Based on your answers, our Fixed Rate Hire Purchase option could be the best fit.

  • It's available for businesses looking to borrow over £25,000 to buy an asset.
  • At the end of the agreement, once all payments have been made, you'll have the option to own the asset by paying an ‘option to purchase fee’.
  • The interest rate and your repayments won't change.
  • Fees may apply if you choose to make changes to your repayments or settle your agreement early.

For more info, read the product factsheet.

Variable Rate Hire Purchase

Based on your answers, our Variable Rate Hire Purchase option could be the best fit.

  • It's available for businesses and partnerships (of 4 or more) and other corporate bodies looking to borrow over £25,000 to buy an asset.
  • At the end of the agreement, once all payments have been made, you'll have the option to own the asset by paying an ‘option to purchase fee’.
  • The interest rate may vary in line with the Bank of England Base Rate, meaning your repayments could go up or down. If you’d rather be certain of your repayment amounts, check out our Fixed Rate option.
  • You'll have the flexibility to pay off your borrowing early, without any charges.

For more info, read the product factsheet.

Which statement best describes your financing needs?

Fixed Rate Hire Purchase

Based on your answers, our Fixed Rate Hire Purchase option could be the best fit.

  • It's available for businesses looking to borrow over £25,000 to buy an asset.
  • At the end of the agreement, once all payments have been made, you'll have the option to own the asset by paying an ‘option to purchase fee’.
  • The interest rate and your repayments won't change.
  • Fees may apply if you choose to make changes to your repayments or settle your agreement early.

For more info, read the product factsheet.

Variable Rate Hire Purchase

Based on your answers, our Variable Rate Hire Purchase option could be the best fit.

  • It's available for businesses and partnerships (of 4 or more) and other corporate bodies looking to borrow over £25,000 to buy an asset.
  • At the end of the agreement, once all payments have been made, you'll have the option to own the asset by paying an ‘option to purchase fee’.
  • The interest rate may vary in line with the Bank of England Base Rate, meaning your repayments could go up or down. If you’d rather be certain of your repayment amounts, check out our Fixed Rate option.
  • You'll have the flexibility to pay off your borrowing early, without any charges.

For more info, read the product factsheet.

Fixed Rate Conditional Sale

If you're looking to buy an asset for private use, our Fixed Rate Conditional Sale could be the best fit.

  • It's our only asset finance product available to private individuals.
  • At the end of the agreement, once all payments have been made, you’ll own the asset.
  • The interest rate and your repayments won’t change.
  • Fees may apply if you choose to make changes to your repayment plan or settle your agreement early.

You can also explore our personal lending options, which can be used to buy assets. 

For more info, read our product factsheet.

We have other finance solutions which may be a better fit for you

If you're looking to lease the asset, Hire Purchase might not be the best option. Our Contract Hire option and other leasing solutions might offer a better fit.

The advantages of leasing and renting are you avoid the risks associated with ownership and upkeep, and can return the asset at the end of the term.

The advantage of Hire Purchase, on the other hand, is that after the term you'll own the asset to use or sell as you like.

Quickly see what you could repay

Try our Fixed Rate Hire Purchase Calculator for a quick estimate of what your monthly repayments could be.

Fixed Rate Hire Purchase Calculator

For other assets or personal use, get a quote here

For Variable Rate Hire Purchase quotes Contact Us

VAT Payable:
£0 £13,000
12 months 84 months Minimum 12 months Maximum 84 months

Add a final lump sum (balloon)?

Representative example

Sorry, we're unable to give a quick quote online

Monthly repayments

£519.50

Online arrangement fee

£0.00

Term length

48 months

Representative APR

9.7%

Fixed interest rate

9.33%

Purchase price

£26,000.00

Deposit

£5,200.00

Final lump sum

N/A

Total borrowing

£20,800.00

Total amount payable

£30,201.28

Unfortunately we're unable to quote online for business with turnover over £25m, or a purchase price over £250k.

Please contact us to discuss your requirements and we'll be happy to help.

Monthly price is purely indicative and subject to change, based on other criteria such as age of asset, mileage, lump sum, model and your financial income. This is not a confirmed quote and does not constitute a formal offer on behalf of Lombard North Central PLC or on behalf of any other member of NatWest Group PLC group of companies.

Steps to apply for Fixed Rate Hire Purchase online

Start your quote

You’ll need to provide details about the asset you want and your business, and we’ll give you an instant quote. The form takes around five minutes. 

Apply and get a decision

Once you've completed your application online we’ll perform a credit search and let you know instantly if you’ve been approved. 

Receive your asset

Once everything has been approved your date for receipt of the asset will be arranged with you.​

Frequently asked questions

Not sure Hire Purchase is for you? Look at our other asset finance options

We offer a wide range of financing options including Hire Purchase, business Contract Hire, Chattel Loan Mortgage, Lease, Residual Value.

Get in touch with us today

Our expert team are here to help, Monday to Friday 9am to 5pm. The quickest way to get help is to start a live chat.

Contact us

Whether it is to arrange additional finance or a general query, our team is here to help.

Manage account

Our simple forms allow you to quickly and easily manage your account details.