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VRF System Finance

Spread the cost of VRF air conditioning systems from £12,000 to £300,000+ with flexible finance options. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a vrf system?

Yes, vrf systems are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £12,000 to £300,000, and most deals are written over 12–84 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£12k – £300k

Approval Speed

24–48 hours

Same-day for < £75k

Rates From

4.5% APR

What would a vrf system cost per month?

£65,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical vrf system price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 4.9% APR
Term
12–84 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Owner-occupiers wanting to own the system outright

Finance Lease

Rate
From 4.5% APR
Term
12–72 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate
From 5.2% APR
Term
36–60 months
Deposit
None required
Ownership
Return at end
Best for
Landlords refitting a multi-let building in phases

Representative example

On a purchase price of £65,000: a 10% deposit of £6,500, then 48 monthly payments of £1,371 at 5.9% APR representative (fixed). Total amount payable £72,308, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
Mitsubishi Electric City Multi PURY Series £30,000 – £110,000 VRF Heat Recovery System (22-124kW)
Mitsubishi Electric PURY-EP Series £45,000 – £140,000 VRF High-Efficiency Heat Recovery System
30kW 2-pipe heat pump VRF (specification class) £18,000 – £30,000 2-Pipe Heat Pump VRF (single-mode zones)
80kW 3-pipe heat recovery VRF (specification class) £55,000 – £90,000 3-Pipe Heat Recovery VRF (mixed heating/cooling zones)

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Tax benefits

VRF systems generally qualify for the Annual Investment Allowance, so the outdoor units, indoor units and controls can usually be set against taxable profits in the year of purchase. The outdoor condensing unit is typically moveable plant, while the refrigerant pipework and indoor units built into ceilings and walls may be treated as fixtures once installed. Splitting the finance and capital allowance treatment between these elements is worth discussing with your accountant before the works begin.

Market context

VRF systems are bought by office landlords, hotels and mixed-use developers who need independent heating and cooling across many separate zones from a small number of outdoor units. Because one installation typically comprises an outdoor unit, extensive pipework and dozens of indoor units, finance is usually arranged for the whole system rather than piece by piece, and often forms part of a wider refurbishment package. A 3-pipe heat recovery system costs more to install than a 2-pipe heat pump system but allows one zone to reject heat while another calls for it, which is why the choice between the two is usually made by the mechanical engineer at design stage rather than by price alone. Replacement is generally driven by the outdoor unit reaching the end of its compressor life, since indoor units in good condition are often retained and reconnected to new outdoor plant. F-gas certified engineers are required for installation and any work on the refrigerant circuit.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

What is the difference between 2-pipe and 3-pipe VRF for finance purposes?
A 2-pipe heat pump system costs less to install but can only heat or cool the whole building at once, while a 3-pipe heat recovery system costs more but allows one zone to reject heat while another calls for it, which is why the choice between the two is usually made by the mechanical engineer at design stage rather than by price alone. Lenders finance both in the same way, based on the total installed cost and your business's trading history, so the finance decision follows the engineering specification rather than driving it.
Can I finance just the outdoor unit and keep my existing indoor units?
Yes. Replacement is generally driven by the outdoor unit reaching the end of its compressor life, and indoor units in good condition are often retained and reconnected to new outdoor plant rather than replaced at the same time, so financing just the outdoor unit and any necessary pipework changes is a common and straightforward approach. Lenders will finance this as a smaller facility than a full system replacement, provided the installer's quote makes clear what is being replaced and what is being retained.
Do I need a certified engineer for VRF installation?
Yes. F-gas certified engineers are required for installation and any work on the refrigerant circuit, and lenders will generally expect the installer's quote or invoice to confirm this before releasing funds. This is standard practice across the industry rather than a barrier to finance, but it is worth building the certified installation cost into the total amount financed rather than treating it as a separate cash cost, since one installation typically comprises an outdoor unit, extensive pipework and dozens of indoor units.
What deposit is typical for VRF finance?
Hire purchase typically asks for a deposit of around 10 to 20% of the system's cost, including installation, with the balance spread over the agreed term and ownership passing to you at the end. A finance lease or operating lease usually needs no deposit, since the lender's security is the equipment itself, which suits landlords and developers who often finance VRF as part of a wider refurbishment package and want to keep cash free for the rest of the project.
How quickly can VRF finance be approved?
A straightforward outdoor unit replacement is commonly approved within a few working days once your application, the installer's quote and basic company details are with the lender. A full system installation as part of a wider refurbishment typically takes longer, around one to two weeks, since the lender is assessing a larger facility and a more detailed specification covering outdoor plant, pipework and indoor units. Submitting the full installer's quote from the outset is the most reliable way to avoid delays.
Is VAT charged on VRF system finance in the same way as other equipment?
If your business is VAT registered, VAT is generally charged in a similar way to other business equipment, though when it falls due depends on the finance structure. Hire purchase treats the system as a purchase from the outset, so VAT is typically due upfront and usually reclaimable on your next return, while a finance lease charges VAT on each rental payment as it falls due instead. Given VRF is often financed alongside a wider refurbishment, it's worth confirming the treatment across the whole project with your accountant.

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