Is there a difference between lease finance and hire purchase?

The major difference between hire purchase and lease finance is the matter of a deposit and VAT. Lease finance does not require a deposit to be paid and at the end of the agreement, the borrower has the option to either purchase, give back or continue to lease the property. Hire purchase is different as a deposit and VAT payment is paid upfront, and the borrower has a guaranteed entitlement to be able to purchase the asset upon agreement completion. To learn more about lease finance options and what may be the most suitable service for you, find out how we can best help you at Portman Asset Finance today.