Why Close Brothers Asset Finance is sharpening its flexible hire offer for UK firms

Reviewed: ad hoc news B2B & Pro desk. Edited and checked on 2026-06-20, 06:57. Details in the imprint.

With Close Brothers Asset Finance Flexible Hire, a firm does not just sign a finance agreement, it effectively rents breathing space for its fleet or machinery. Monthly costs stay predictable while the kit on site can stay surprisingly up to date and reliable.

What Flexible Hire actually offers

Flexible Hire from Close Brothers Asset Finance is a long-term rental style product for business-critical assets like commercial vehicles, construction machinery, and manufacturing equipment, typically over one to seven years. Businesses pay fixed, tax-deductible monthly rentals rather than owning from day one.

The product includes options to tailor contracts around seasonal cash flows, giving operators the choice of lower payments in quieter months and higher ones in peak periods. For firms juggling uneven order books, that flexibility can feel more realistic than a rigid repayment schedule.

How it differs from classic leasing

Unlike a straightforward hire purchase agreement, Flexible Hire usually leaves ownership with Close Brothers Asset Finance, which can help keep assets off the customer’s balance sheet under certain accounting treatments. That can free headroom for other borrowing, something many SMEs value.

Contracts commonly bundle in services such as maintenance or replacement options, depending on asset type and credit profile. Instead of scrambling for cash when a truck or excavator fails, the firm can swap within the agreed framework and keep jobs moving.

Everyday impact on a small fleet

On the ground, Flexible Hire can mean a local haulier runs newer vehicles with better fuel efficiency and lower emissions than it could easily buy outright. Drivers step into tidy cabs with fewer breakdown worries, and the owner looks at a single, predictable monthly line in the accounts.

In construction, a regional contractor might add a second excavator for a big project, knowing the additional rental can taper once the contract ends. That temporary capacity, without a long-term ownership commitment, can decide whether a risky bid suddenly becomes acceptable.

Where the limits show up

The flip side is that total lifetime cost can end up higher than buying an asset and running it for many years, especially for low-mileage use. Firms that keep vehicles or machines well beyond their finance term may find classic hire purchase cheaper.

There is also less freedom to modify or heavily customize assets, because ownership sits with the lender. A logistics specialist that wants unique bodywork or bespoke interiors may prefer products with a clearer path to outright ownership from day one.

Risk management and credit view

Credit approval for Flexible Hire still depends on the customer’s financial strength and the asset’s resale profile, so it is not a blanket solution for distressed firms. Close Brothers prices in residual value risk and the cost of potential downtime or remarketing.

For the bank, the model supports recurring revenue and deepens long-term relationships with core customers in transport, construction, and manufacturing. For the customer, it spreads risk between lender and operator instead of loading it all onto one fragile balance sheet.

How it fits into Close Brothers Group

Flexible Hire sits within the broader Close Brothers Asset Finance and Leasing division, alongside hire purchase, finance lease, and refinancing products for UK SMEs. The group highlights this unit as one of its engines of interest income and fee-based earnings.

Shares of Close Brothers Group plc (GB0007668071) trade on the London Stock Exchange in pounds sterling.

This article was AI-assisted and editorially reviewed. Product information without guarantee; prices and availability may change at short notice. No investment advice, no buy or sell recommendation. Stock-market transactions involve risks up to total loss.