Leasing &
Hire Purchase Checklist

Leasing &
Hire Purchase Checklist

Leasing or Hire Purchase helps businesses acquire the use or ownership of assets like vehicles, plant and machinery and IT equipment without putting a strain on working capital or other credit lines.
 
This checklist could help you avoid common mistakes and help you decide whether Leasing or Hire Purchase suits your business before you apply.

<p>Leasing or Hire Purchase helps businesses acquire the use or ownership of assets like vehicles, plant and machinery and IT equipment without putting a strain on working capital or other credit lines.<br />
 <br />
This checklist could help you avoid common mistakes and help you decide whether Leasing or Hire Purchase suits your business before you apply.</p>

Leasing or Hire Purchase helps businesses acquire the use or ownership of assets like vehicles, plant and machinery and IT equipment without putting a strain on working capital or other credit lines.
 
This checklist could help you avoid common mistakes and help you decide whether Leasing or Hire Purchase suits your business before you apply.

Please note

This checklist is not part of an application process for Leasing or Hire Purchase However, we hope it gives you an idea of what is involved and what you need to do to prepare for Leasing or Hire Purchase. Some providers may ask for more or less information about your business and the finance you need than what is set out below. This will change depending on the circumstances, the assets and the lender involved.

STAGE 1: Leasing or Hire Purchase?

What do you want to do with the asset at the end of the rental agreement? Do you want to continue to rent it, return it or replace it?
Do you want to own the asset at the end of the contract?

STAGE 2: Are you a suitable candidate for Leasing or Hire Purchase?

Your business doesn’t need to be profitable, but you need to display your ability to make your rental payments.
Leasing and Hire Purchase providers will look at your business’ credit report. A poor credit rating won’t necessarily result in rejection, but you may get less favourable terms.

STAGE 3: Understanding the agreement

Do you need to pay a deposit at the start of the agreement? Do you need to provide other security? Can you reduce monthly repayments by paying more upfront or extending the term, depending on the type of asset?
Are payments fixed? Is there a minimum term to the rental agreement? Are there any fees involved at the end of the contract or for paying off early?

STAGE 4: What happens when the agreement or contract ends?

Do you have an option to continue renting the equipment at the end of the minimum or primary term? Will you want to return it? Or will you look to replace it?
Is there a fee payable to secure title to the asset?

What's your next step?

Did you know?

Leasing & Hire Purchase are forms of Asset Finance. As the Finance and Leasing Association (FLA) puts it:

"Asset finance” is a term used to describe leasing and hire purchase solutions for businesses."