Finance Products Explained

Understand the main business finance products available for vehicles, machinery and equipment. We help South West and UK businesses choose between hire purchase, lease purchase, operating lease and PCP, then arrange the right facility for their needs.

What is Hire Purchase?

What is Lease Purchase?

What is Operating Lease?

Hire Purchase

Hire purchase lets your business spread the cost of a vehicle or piece of equipment over a fixed term. You usually pay a deposit, then regular monthly payments. When the final payment is made, you own the asset.

Many Dorset and South West businesses use hire purchase to fund tractors, commercial vehicles and machinery. You agree the asset price, deposit and term with the funder, pay the deposit at the start, then make fixed monthly payments. Once the last payment is made, ownership passes to you.

Key benefits

  • You become the owner at the end of the agreement
  • Fixed payments make budgeting and cash flow planning easier
  • Works well for business vehicles, plant and machinery you plan to keep
  • Preserves working capital compared with paying in full up front
  • Common structure for asset finance across agriculture, construction and transport
  • Potential tax and accounting advantages (speak to your accountant)

Lease Purchase

Lease purchase is similar to hire purchase but includes a larger final payment at the end of the term. This structure can reduce the monthly payments while still giving you the option to own the vehicle or equipment once all payments are made.

It is often used by hauliers, contractors and other UK businesses for higher‑value trucks, vans and specialist equipment. You agree the asset price, deposit, term and final lump sum, pay the deposit, then make lower monthly payments. At the end, you either pay the final amount to take ownership or discuss refinance options, subject to approval.

Key benefits

  • Lower monthly payments than a standard HP in many cases
  • Helps you access higher‑value vehicles and equipment
  • Ownership is available once the final payment is made
  • Useful for commercial vehicle finance where cash flow is tight
  • Flexible structure for South West businesses upgrading fleets or machinery

Operating Lease

An operating lease lets your business use a vehicle or piece of equipment for an agreed period without taking ownership. You pay rentals for the use of the asset and usually return it, or replace it, at the end of the lease term.

This type of business equipment finance is popular with construction, manufacturing and transport firms across Dorset, the South West and the wider UK. You choose the asset and expected usage period, agree the rental term and any mileage or usage limits, then pay regular rentals. At the end of the agreement you normally return the asset, extend the lease or upgrade to a replacement, subject to the funder’s terms.

Key benefits

  • No need to tie up capital in owning the asset
  • Helps keep vehicles and equipment up to date
  • Rentals can be aligned with the asset’s working life and usage
  • Can offer accounting and tax advantages depending on your circumstances
  • Well-suited to fleets and equipment that are replaced on a regular cycle

PCP (Personal Contract Purchase)

PCP is a flexible way to finance cars and light commercial vehicles. Monthly payments are based on the expected future value of the vehicle, which can make them lower than a standard hire purchase agreement.

PCP often suits business owners and company car drivers who change vehicles every few years. You choose the vehicle, agree the term, mileage and guaranteed future value, then pay a deposit followed by monthly payments. At the end you can either pay the final value to keep the vehicle, hand it back (subject to mileage and condition) or, where available, part‑exchange into a new agreement.

Key benefits

  • Lower monthly payments than a standard hire purchase in many cases
  • Flexibility at the end of the agreement
  • Works well if you like to change vehicles regularly
  • Can help you access newer or higher‑spec business cars and vans within a set budget

Frequently Asked Questions

Finance Products FAQs

  • What's the difference between hire purchase and lease purchase?

    Hire purchase spreads the full cost over the term with fixed monthly payments. Lease purchase includes a larger final payment, which reduces the monthly cost. Both let you own the asset at the end.

  • Can I settle the finance early?

    Early settlement terms vary by lender and agreement type. Some lenders allow early settlement with no penalty, while others may charge a fee. We'll explain the terms upfront so you know your options before you commit.

  • Which finance product is best for my business?

    It depends on your cash flow, how long you plan to keep the asset and whether you want to own it. We'll talk through your options and recommend the best structure for your needs.

  • Do you charge broker fees?

    No. GDFS does not charge broker fees. We are paid a commission by the lender when your finance is arranged.

  • What areas do you cover?

    We are based in Bridport, Dorset and primarily serve businesses across Dorset and the South West. We can also help businesses across the wider UK.

Agriculture Finance

Competitive rate financing for machinery, equipment & more.

Vehicle Finance

Flexible financing for business vehicles and fleets.

Construction Finance

Finance for plant, machinery and specialist vehicles.

Manufacturing Finance →

Renewable Energy Finance →

Office & IT Equipment →

explore your options today

We're here to help you drive your business forward by delivering the competitive finance solutions you need - when you need them.


If you would like to talk to the GDFS Sales Team, please call us today on 01308 480248. Alternatively, you can simply complete the enquiry form.


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Gavin Dixon Finance Solutions Limited is an Appointed Representative of Rural Finance Limited. Rural Finance is authorised and regulated by the Financial Conduct Authority, FRN 630701. Rural Finance Limited is an authorised credit broker and not a lender. GDFS is acting as a credit broker and not a lender. We can introduce you to several carefully selected credit providers who may be able to offer finance for your asset funding needs. We will receive a commission from the lender for any successful introduction. Finance is available subject to status. Terms and conditions apply. Applicants must be 18 or over. Guarantees and/or indemnities may be required. For more information, please visit the FCA website. FCA website

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