Equipment Finance
Funding to acquire plant, machinery and equipment while preserving cash, via hire purchase or leasing.
Hire purchase and leasing carry different accounting, tax and ownership consequences. We set out the practical differences and recommend you confirm the tax position with your accountant.
Why Equipment Finance Requires the Right Lender
What we arrange
- Hire purchase leading to ownership
- Finance and operating leases
- Refinance of equipment already owned
- Terms usually aligned to the asset’s useful life
Who this is for
- Businesses investing in plant and machinery
- Companies preserving cash for working capital
- Firms releasing capital from owned equipment
How London FS helps
Hire purchase and leasing carry different accounting, tax and ownership consequences. We set out the practical differences and recommend you confirm the tax position with your accountant.
Important information
The Financial Conduct Authority (FCA) does not regulate some forms of Buy To Let, Commercial & Development Finance, Bridging Finance, Overseas/Foreign National Mortgages and Will Writing.
Dhavi Limited (trading as London FS) is authorised and regulated by the Financial Conduct Authority — firm number 628993. Registered in England, company number 7301914. Registered office: 7 Bell Yard, London, WC2A 2JR.
Hire Purchase Versus Lease
Ownership and accounting treatment differ between the two. Your accountant can confirm the tax position for your business.
Sale and Leaseback
Releasing capital from equipment you already own outright.
Terms Matched to Asset Life
Repayment aligned to how long the equipment will actually earn.
Why Equipment Finance with London FS?
Equipment Finance requires more than access to lenders. It requires accurate interpretation of your circumstances and placement with a lender that genuinely understands them.
Hire purchase and leasing carry different accounting, tax and ownership consequences. We set out the practical differences and recommend you confirm the tax position with your accountant.
Nil-Deposit Options
Available for stronger covenants where cash preservation matters most.
Broad Asset Class Coverage
Funders with appetite across specialist and general equipment.
Accountant Coordination
We work alongside your accountant on the tax treatment rather than guessing.
Who Benefits from Equipment Finance
Businesses Investing in Plant
Companies Preserving Cash
Firms Releasing Capital From Assets
Another Project, completed and with Amar’s help we got it over the line! Amar always goes over and above to get the job done, and I come with many issues 
we spoke so much he must of thought he was a full-time employee of mine. (sorry) Next one will be simple 
I have already recommended him and London FS- Property Finance to others, highly recommended and 5 star service. Thank you.
Invest in Equipment, Keep Your Cash
Funding to acquire plant, machinery and equipment while preserving cash, via hire purchase or leasing.
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Our Commercial Finance services are structured around real client circumstances rather than product categories, with independent advice across the whole of market.
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Frequently Asked Questions on Equipment Finance
Do I own the equipment?
Under hire purchase, yes, at the end of the term. Under a lease, generally not.
Can existing equipment be refinanced?
Yes, sale and leaseback can release capital from assets you already own.
What deposit is required?
Commonly 10–20%, though nil-deposit options exist for strong covenants.
What deposit is typically required?
Commonly 10-20%, though nil-deposit options exist for strong covenants.
Can second-hand equipment be funded?
Yes, though age and residual value affect both term and leverage.
What is the difference between HP and lease?
Hire purchase leads to ownership; a lease generally does not. Treatment differs, and your accountant can confirm the position. We do not provide tax advice.
Can I settle early?
Usually yes, often with a rebate of future interest, though terms vary by funder.
Is equipment insured by me or the funder?
You insure it, and the funder will require evidence of cover with their interest noted.
What happens at the end of the term?
Under HP, ownership transfers. Under a lease, you return, extend or purchase at fair value.