This new product has been created in partnership with Corporate Asset Solutions (CAS).
CAS – which specialises in leasing and asset finance – will provide a robust distribution channel and processing, while RateSetter will undertake the appropriate analysis of loan applications and make all the approval decisions.
The peer-to-peer lender will offer hire purchase agreements for purchases up to £750,000, with full security taken over the underlying assets.
RateSetter also considers direct hire purchase loan deals.
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Paul Marston, managing director of commercial finance at RateSetter, said: “Hire purchase is a logical area for us to expand into: it allows us to help good-quality businesses who want to expand or become more productive.
“We take full security over the asset, which provides an extra layer of protection.
“We have chosen CAS as partners as we build this new area of business based on their considerable understanding of this market and their origination capability.”
Zac Cogan, managing director of CAS, added: “I am delighted that RateSetter has selected CAS as its partner on this exciting new product.
“Our companies have aligned values and growth plans.
“The team at RateSetter is progressive, dynamic and passionate about providing customers with viable, competitive alternatives, something that we also hold at the core of our values.”