Asset finance Ireland: hire purchase and leasing for companies

Funding to buy or use business equipment, vehicles or machinery, where the asset itself is the lender's main security. Your company spreads the cost over the asset's working life instead of paying upfront. The main types are hire purchase, where you own the asset at the end, and leasing, where the lender keeps ownership. Because the lender can recover the asset, it is often easier to arrange than unsecured lending.

The lender pays the supplier for the asset and your company repays the lender over an agreed term, usually monthly. On hire purchase your company owns the asset after the last payment; on a lease the lender keeps ownership. The lender checks your accounts, bank statements and the asset itself, and can recover the asset if payments stop. VAT and tax treatment depend on the structure.

Banks, specialist asset finance companies and the finance partners of equipment and vehicle dealers. Some fund all kinds of assets, while others focus on vehicles, plant, IT or medical equipment. Each sets its own criteria, so compare at least two offers on the total amount repayable, the deposit and the fees, not only the monthly payment.

It depends on VAT, tax and how long you will keep the asset. With hire purchase, VAT on the full price is due at the start and your company owns the asset after the last payment, so it can usually claim capital allowances. With a lease, VAT is charged on each rental and the lender keeps ownership. Ask your accountant which suits your position.

Often, yes. Many lenders ask for a deposit on hire purchase, often around 10%, while leases usually ask for one or more rentals in advance. Some lenders offer 100% finance for strong companies and assets that hold their value. A trade-in can sometimes count towards the deposit, so ask the lender how it treats one.

Yes, with many lenders, subject to the asset's age, condition and resale value. Lenders want to know the asset will still be worth something if they have to recover it, so older or highly specialised items can be harder to fund or get a shorter term. A valuation or inspection may be needed, and buying from a dealer is usually simpler than a private sale.

Usually, if your company owns or is treated as owning the asset. Plant and machinery bought outright or on hire purchase generally qualifies for wear and tear allowances of 12.5% a year over eight years. With most leases, the rentals are deducted instead. Cars have their own limits, and some energy-efficient equipment qualifies for the Accelerated Capital Allowance. Confirm with your accountant.

Usually 1 to 5 years, and up to 7 years or the asset's useful life with some lenders for long-life machinery. Lenders aim to finish the agreement while the asset still has value. A longer term lowers the monthly payment but raises the total cost, so match the term to how long your company will actually use the asset.

The Growth and Sustainability Loan Scheme can fund machinery, equipment and lower-emission vehicles as long-term projects, and high-emission vehicles are restricted. Banks offer it as a term loan, and Close Brothers takes part through its asset finance business. You apply directly: get an eligibility code from the SBCI, then apply to a participating lender. See our SBCI page.

No. The Consumer Credit Act 1995 protects consumers, meaning individuals acting outside their business, so hire purchase and leasing for a limited company are business finance. Regulated lenders may still owe your company protections, such as under the Central Bank's SME Lending Regulations or the Consumer Protection Code, which already covered companies with turnover up to €3 million; from 24 March 2026 the limit rose to €5 million.

Start-ups registered as limited companies in Ireland can apply through Welcome Finance. Most lenders look for some trading history, so options may be fewer for a new company. New companies can also ask equipment suppliers about their finance partners, speak to their bank or contact their Local Enterprise Office. Tell us what your company needs and we'll tell you honestly whether our panel can help, or where to apply instead.