Hire Purchase

Hire purchase is used by businesses and professional practices to purchase a wide range of equipment and machinery.

It offers a simple solution for spreading the capital cost of new or used equipment and machinery over a period of time and at the end of the agreement title automatically passes for a nominal fee.

Equipment Suitable for Hire Purchase

At TeleLease we can finance most items of new and used machinery and equipment on hire purchase including:

  • Dental equipment
  • Medical equipment
  • Scientific equipment
  • Veterinary equipment
  • Office equipment
  • Computers

Period of Loan

The maximum loan period will be determined by the type of equipment or machinery you want to finance and the credit rating of your business.

We offer Hire Purchase over periods from two to seven years enabling the capital cost to be scheduled over the expected life of the asset.

Fixed or Variable Interest Rates

In most cases the interest you pay on a HP agreement will be fixed for the period of the loan.

For more expensive machinery we can arrange a variable rate agreement where the interest is linked to LIBOR or Bank of England Base Rate.


For VAT registered businesses any VAT paid on a Hire Purchase agreement can be reclaimed in full providing the equipment or machinery is purchased for business use.

In some cases we can defer collecting VAT to coincide with your VAT reclaim date.

Income Tax/Corporation Tax

Equipment, machinery & commercial vehicles financed on hire purchase will usually qualify for 100% first year allowances via the Annual Investment Allowance.

The interest element of the agreement and non recoverable VAT (in the case of exempt businesses) can also be claimed as a business expense to reduce tax liability.

Accounting for Hire Purchase

Assets financed on a HP agreement should be capitalised on your company balance sheet and the outstanding repayments shown as a liability according to the period of the loan.

Hire Purchase or Lease Purchase?

The name Lease Purchase is slightly misleading and can cause a degree of confusion.  In reality, hire purchase and lease purchase are the same type of agreement.

Contact us today

Please call us today for an informal discussion or complete the following contact form and we will call you.

Find out more

For an informal discussion, complete the following form and we will contact you.

    Dr Joanne Birdsall
    "I want to say thank you to the whole team at TeleLease, they made growing my business very simple. The finance and tax relief were explained simply but in detail. The customer service was exceptional. Becky and Mike in particular were very helpful and made the whole process easy and quick"
    Dr Gopinder Lalia
    "An easy and straightforward process"
    Dr Teodora Todarova
    "It was so easy to arrange the finance. All the documents came on time, so didn’t miss my product deal. I also loved the fact everything was dealt with electronically – no paper in my hand"
    Dr Ashwin Bechar
    "Good efficient support. Full marks"
    Dr Lesley Morgan-Barlow
    "TeleLease exceeded our expectations in handing our asset finance needs swiftly and professionally. We highly recommend their services to any business seeking prompt and efficient financial solutions"
    Dr Kully Shoker
    "Very happy with the service. Many thanks for your assistance, much appreciated"

    Call us today on 03300 580151



    3 Brindleyplace
    3 Brindleyplace
    Birmingham, United Kingdom
    B1 2JB
    B1 2JB