Finance Options

At Lumos Business Finance, we help businesses access straightforward, flexible funding for vehicles and equipment. Each finance product works slightly differently, so we’ve outlined the key features and benefits below to help you compare your options easily and choose the right fit for your business. This guide makes it simple to understand how each facility works and when it may be suitable.

Hire Purchase (HP)


A simple way to buy a vehicle or asset while spreading the cost over an agreed term.

Key Features:

  • Pay an initial deposit (often the VAT if applicable)
  • Fixed monthly instalments for predictable budgeting
  • Ownership transfers to you once the final payment is made


    • Ideal For:

    Businesses that want full ownership and long-term control of their fleet or equipment.

    Finance Lease


    Use the asset your business needs without taking ownership at the end of the agreement.

    Key Features:

  • Begin with an initial rental followed by fixed monthly rentals
  • VAT is spread across the rentals, reducing initial outlay
  • End-of-term options:
    - Sell the asset on the funder’s behalf and retain most of the proceeds
    - Continue using the asset through a low-cost secondary rental period


    • Ideal For:

    Businesses looking for lower upfront costs and flexible end-of-term choices.

    Sale and HP Back


    Buy an asset quickly using your own funds, then refinance it through a Hire Purchase agreement.

    Key Features:

  • Releases capital back into your business shortly after purchase
  • Usually completed within 90 days of the original payment
  • Ownership transfers to you once the HP term is completed


    • Ideal For:

    Businesses that need to move fast while keeping working capital available.

    Sale and Lease Back


    Similar to Sale and HP Back, but structured as a lease instead of a purchase agreement.

    Key Features:

  • Quick release of capital after the asset has been purchased
  • Lower upfront costs because VAT is spread across rentals
  • Option to continue using the asset during a secondary rental period

    • Ideal For:

    Businesses that want flexible leasing combined with a cash release.

    Refinance / Equity Release

    Unlock the value already tied up in vehicles or equipment your business owns or partly finances.

    Key Features:

    • Free up capital for growth, cashflow, restructuring, or additional purchases
    • Suitable for assets owned outright or still under finance
    • Keep full use of the asset while releasing funds from its value

    Ideal For:

    Businesses needing a quick injection of capital without selling their equipment.

    Which option is right for your business?


    Not every finance product suits every situation, so here’s a simple overview to help guide your decision:

    You want to own the asset at the end ➔ Hire Purchase or Sale and HP Back
    You want low upfront costs ➔ Finance Lease or Sale and Lease Back
    You need cash back after buying an asset ➔ Sale and HP Back or Sale and Lease Back
    You want to free up capital from assets you already own ➔ Refinance / Equity Release

    Here To Help


    If you’re unsure which option suits your business, we’re happy to talk you through the choices and recommend what works best.