What Are Lease Finance and Hire Purchase Agreements?

Exploring the differences between lease finance and hire purchase options when funding assets.

If you're looking to apply for asset and equipment finance, Millbrook offers the flexibility to choose either a  lease finance or a hire purchase agreement. Let's look at the key differences between the two options.

Lease finance

Want to benefit from assets without the weight of ownership? A lease finance agreement lets you enjoy an asset's perks without legal ownership hassles. While the finance company holds the asset's title, you take on the risks and rewards as a lease. Plus, when the lease term concludes, you can become the proud owner by covering a nominal "transfer of title fee".

Hire purchase

On the other hand, if you're aiming to own valuable items without a hefty upfront cost, consider a hire purchase. This approach lets you start your ownership journey with an initial payment, followed by manageable instalments, including interest.

Remember, while some payment plans offer immediate ownership, with a hire purchase, complete ownership waits until your payment obligations are fulfilled, allowing you to embrace the ownership experience step by step.

Learn more about asset and equipment finance

Explore our asset and equipment finance solutions or get in touch with our friendly team of business finance specialists.