Hire Purchase.
For sole traders
& partnerships

  • Asset Finance & Business Loans

  • A Professional & Friendly Service

  • A Broker with Multiple Funding Options

Portman Financial Services

Hire purchase agreements – spread costs with a guaranteed ownership option

Hire purchase agreements are a form of asset finance that allow you to spread the cost of purchase whilst having a guaranteed ownership option at the end of the term. Often used for high value items such as plant, machinery, heavy equipment and vehicles that have a high residual value once the term of the loan has ended. HP finance requires both the deposit and VAT to be paid upfront but at the end of the term a nominal administration fee guarantees you ownership of the asset. You can also claim capital allowances such as full expensing where qualifying equipment is bought using a hire purchase agreement.

Portman make it simple

How do I arrange hire purchase finance?

Whether you’re a finance pro or just want to get on with serving your customers, your dedicated account manager will guide you through the process, searching the market, structuring your proposal and completing applications on your behalf.


1. Register your interest

Simple enquiry form, does not affect your credit score.


2. A quick chat

A dedicated Account Manager will call to discuss your goals, your situation and request appropriate documents.


3. We approach our funders

We use our panel to find the best funding options, complete proposals and make applications.


4. If accepted, your funds are released

If the applications are successful and you accept, funds are quickly released.

Enquire today

How does a Hire Purchase agreement work?

You decide what equipment, machinery or vehicles your business needs and where to buy it from. Contact Portman to discuss you finance options, monthly payments, and available payment structures. The most appropriate deal is secured, the deposit and repayment structure are confirmed, and a financial agreement is formally accepted.

The asset is then bought by the lender and sold to your business on credit, paying the VAT upfront plus a deposit. You’ll then make fixed monthly payments over an agreed period, owning the item outright at the end of the term once the contractual payments are made and by paying a nominal final option to purchase fee. 


When you should look at Hire Purchase Finance

Hire purchase is best suited for situations where a company definitely wants to own the item at the end of the term, often where the asset has a significant usable lifespan, a high residual value, and will not need to be upgraded.


What happens at the end of the HP agreement?

During the agreement period, the asset is owned by the lender. Once the term is complete, the business has a guaranteed option to own the asset. They can do this by either a nominal purchase fee or a balloon payment, depending on which was chosen at the outset.


Are Hire Purchase payments tax deductible?

Hire purchase involves ultimate asset ownership, meaning you can claim some capital allowances. It may be possible to deduct the interest element of the cost from the company P&L and depreciate the asset’s capital value. We do recommend that you seek professional tax advice.


Is Hire Purchase expensive?

Hire purchase interest rates often vary based on credit history, business performance, and the type of asset purchased. Portman will approach a range of funders on your behalf and choose the lender(s) that most closely match your needs.


Why choose a Hire Purchase agreement

  • Get what you need now
  • Preserve existing credit lines
  • Structure the deposit and repayments to suit your monthly budget
  • Avoid price inflation 
  • Potential tax advantages
  • Preserve cash flow for operational costs and contingency
  • Capture opportunities immediately
  • Secure fixed competitive rates

Why fund my pub with Portman?

But why should you choose these financing options from Portman Financial Services?

The answer is simple. At Portman Financial Services we are focused on serving the needs of sole traders and small partnerships like your pub and have been doing so for thousands of other businesses since 2007.

This dedicated business is part of the Portman Finance Group which raising over £1 billion in funding for UK SMEs.

  • We take the time to truly understand your business and what you need, ensuring we secure the right funding for
  • As both a broker and a lender, we can offer financial options that others cannot.
  • We will do our best to help even if you don’t have a strong credit history.
  • We promise you will have one point of contact from start to end.
  • We provide solutions quickly, sometimes within hours.

We can offer assistance for most types of assets and purposes for your pub.

Let our experts find affordable funding for you

Register your interest

A professional, personal service every time

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Excellent service

A very straight forward, and super speedy, service. We were assigned to Andrew and he really could not have be more professional and helpful. He took time to understand what we were looking for and based on that came up with the best possible route. Highly recommend!!

Lottie Elmehagen
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Worked hard to find the right deal

Rob worked hard to find the right product for me and get everything in place. He gave some good advice with regards to the products on the market. Very happy with the service and the regular updates.

Tony Lewis
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Simple process with quick turnaround

Portman, and Jack in particular, were easy to deal with and helped with some medium term funding requirements. The whole process was fairly straightforward and needed little work on our part. Definitely recommend.

Mel Wright
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Excellent service from Portman

I have used Portman Asset Finance before and I was pleased with the service I received the first time. When I contact them this time I spoke to Daniel Cooper who was really helpful and kept to his word and promises. I can not fault the service I received and I would highly recommend them. Much better than HSBC who I bank with.

Ross Wilkins

Excellent / 500+ reviews

Hire Purchase FAQs

Finance that gives you a guaranteed option of ownership in exchange for usually paying an initial deposit and the VAT upfront.

What’s the difference between hire purchase and lease finance?

With a hire purchase agreement, the borrower typically pays the VAT and a deposit upfront. With lease finance there is usually no deposit, and the VAT is spread across each payment. There are different taxable benefits between a hire purchase and a finance lease and your accountant will be able to offer some guidance on which product would be more suitable to your business. With hire purchase, the borrower has a guaranteed right to buy the title of the asset they have financed, which will normally be for a nominal administration fee. At the end of a lease finance agreement, the borrower can give the equipment back, continue leasing the equipment or title to the asset can generally be acquired through a nominated third party.

What happens at the end of a hire purchase agreement?

At the end of a hire purchase agreement, the borrower has a guaranteed right to purchase the title, i.e. own, the asset for which there may be a nominal administration fee.