Asset finance spreads the cost of equipment, vehicles, plant or machinery over fixed monthly payments, with the asset itself as the security. Because it's priced on the asset, approval often rests on the kit, not just your accounts.
Hire purchase
- You pay for the asset in instalments.
- You own it once the final payment is made.
- Suits assets you plan to keep for their working life.
Leasing
- You pay to use the asset for an agreed period.
- You don't own it. At the end you can usually return it, extend the lease or arrange a sale, depending on the type of lease.
- Suits assets you'd rather upgrade regularly.
What to expect
- Typical range: £25,000 to £2 million.
- Typical time to funds: 2 to 4 weeks.
- Security: the asset itself, which often means less reliance on other security.
Tax and accounting
Hire purchase and leasing are treated differently for tax and on your balance sheet. Ask your accountant which suits your business.
Under the Growth Guarantee Scheme
Asset finance is covered, from £1,000 and for up to 10 years. See How much can I borrow under the Growth Guarantee Scheme, and for how long?.
Last reviewed: 8 October 2026