Contract Hire & Operating Lease

When it comes to financial flexibility without the commitment of asset ownership, our bespoke Contract Hire solutions stand out.

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Understanding Contract Hire

Contract Hire (Fixed Term) – Fixed hire agreement over a fixed period, at the end of the agreement, subject to funder, you will return the asset to the supplier / dealership. Within the monthly rentals there is a level of maintenance (provided by the supplier) included and there is an RV (Residual Value) which the supplier or funder will pay on your behalf to terminate the agreement.

Operating Lease – Mirrors a Contract Hire agreement, however there is no maintenance payment within the agreed rentals.

Contract Hire Information

Contract Hire Regulation Features

Suitable Customers

It is important that you know if a product is suitable for you. All finance agreements are subject to underwriting, it is essential that you read and understand any finance agreement prior to signing.

Unregulated requirements
  • UK Based customers
  • Sole Traders purchasing an asset over £25k
  • Partnerships (3- individuals) purchasing an asset over £25k
  • Partnerships (4 + individuals)
  • Limited companies. Limited Liability Companies PLCs
  • High Net Worth Individual – Asset over £60,240
  • Over 18 years
  • Customers with the ability to repay the agreed rentals.
  • Customers who can make payments via direct debit.

Product Purpose

It is important that you know the purpose of each of the products we offer. By understanding what there are designed for gives you a greater understanding of how they will work for you.

Unregulated requirements
  • The purpose of these products is to provide finance for identifiable equipment where keeping operating costs at a minimum and ownership is not the priority. Predominately supporting agricultural, golf, industrial, construction, haulage & logistics, professionals, IT and many more

Product Characteristics & Benefits

It is essential that you understand the characteristics and benefits of our products and how they work. They all have both legislative and regulatory differences as well as more practical considerations to consider.

Unregulated requirements
  • This is a hire agreement, a customer will not get ownership of the asset, they hire it from the funder. Popular choice for customers where maintenance of the asset and lower monthly costs are more important than ownership.
  • Terms from 24 months – 60 months. Heavy commercial assets may have different terms.
  • Monthly & quarterly profiles allowed.
  • Assets must be returned to the supplier at the end of the agreement.
  • Customers will get immediate use of a business use asset.
  • Fixed payments and flexible payment structures allow businesses to match income and expenditure cycles.

Pricing & Fees

Products have different fees and pricing depending on type, term and regulatory governance it is essential you read and understand any product features relating to pricing and fees prior to signing.

Unregulated requirements
  • Fixed pricing, interest bearing. Maintenance is included within the rental cost for Contract hire agreements.
  • VAT is paid throughout the lifetime of the agreement against each rental.
  • Upfront processing or document fees may apply.
  • Residual Value is set by the funder, or the supplier and it is the responsibility of the funder or supplier to pay this at the end of the contracted term.
  • Termination can happen prior to the end of the term however charges may apply.
  • Commission is paid to the broker for this type of introduction, if you wish to know more email

Risks & Considerations

Entering into any financial contract is to be done with due consideration to risk. It is essential you read and understand any financial product prior to signing. If you have any doubt in understanding the risks to you as a customer you must seek clarification from the finance provider.

Unregulated requirements
  • Missed payments may impact the customers credit rating and result in the asset being repossessed.
  • Customers responsibility to maintain the asset so it is returned in a suitable condition. Customer may wish to consider purchasing insurance against the asset.
  • Must ensure you read and understand the return conditions carefully for each funder.
  • Often there is a fixed level of usage allowed for the period of the contract. Excess usage and excess hours may apply.
  • Customers responsibility to maintain the asset so it is returned in a suitable condition. Customer may wish to consider purchasing insurance against the asset.
  • Not all lenders offer this product.
  • Not available or suitable on all assets, discuss with broker.
  • Not suitable for consumers.
  • Not suitable if you want to own the asset (consider HP agreements, discuss with broker)
  • Additional Security maybe requested by the finance company such as a personal or company guarantees.
  • Additional charges could apply (some are listed below)
  • Late payment fees
  • Direct debit represented fee
  • Settlement charges (standard or new business)
  • Termination fees
  • Novation charges


We have a broad spectrum of customers from SME to PLC businesses, we treat everyone with due care any consideration and it is imperative that our customers understand what they are agreeing, we look to support any customer with additional requirements or needs.

Unregulated requirements
  • Our customers come first. We want to ensure that you fully
    understand what you are agreeing to.
  • If you require additional support, you must make your broker aware so they can offer the most suitable support
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