Decide whether to lease or buy assets

The types of companies that offer hire purchase and leasing contracts include:

• subsidiaries of major UK banks
• providers owned by manufacturers, such as car manufacturers
• non-UK banks
• independent finance houses
• equipment suppliers
• members of the Finance & Leasing Association (FLA)

When assessing the most appropriate leasing company to use, make sure:

• the provider is a reputable company, preferably a member of the FLA
• your contract corresponds with any verbal or written quotations
• the period for which you need the asset is covered by the length of the leasing agreement
• you are aware of any financial penalties that may be incurred if you wish to end the agreement early
• the equipment you are leasing is new
• you have read the contract carefully before signing it - checking the total cost, the period of hire and notice periods
• you understand all the contract terms and conditions, and charges