HP has introduced a subscription service for UK small businesses, marking its first such offering in the country through a partnership with Raylo. The program allows firms to access selected HP devices on rolling or fixed monthly terms, eliminating the need for outright hardware purchases. Raylo handles credit underwriting, device fulfillment, returns, refurbishment, and redeployment, creating a closed-loop system for device lifecycle management.
The move aligns with a broader industry shift toward subscription-based technology access. Brands like Apple, LG, and PlayStation already use Raylo’s platform to offer similar programs, reflecting growing consumer and business preference for recurring access over one-time transactions.
UK small and medium-sized enterprises (SMEs) represent 99.8% of the country’s 5.7 million private sector businesses, according to cited figures. Many face financing challenges when upgrading equipment, often forced to choose between debt, budget stretching, or continuing with outdated hardware. Data shows 43% of UK SMEs rely on external financing for technology investments.
The subscription model addresses these constraints by letting businesses pay monthly fees for devices and return them when no longer needed. Raylo refurbishes returned hardware and redeploys it to other customers, extending device lifecycles and promoting a circular economy approach. This also creates recurring revenue streams for HP beyond single hardware sales.
For Raylo, the partnership adds a major brand to its portfolio amid rising subscription demand. The company reported $100 million in annual recurring revenue, up 60% year-over-year, and added 41,500 new subscriptions between April and June. Over 250,000 customers have opted for subscriptions instead of outright purchases, with returning subscribers upgrading devices at an 89% higher rate than last year.
Cash flow preservation is a key driver for small businesses adopting this model. Instead of front-loading capital expenditures, firms can spread costs over time and return devices when their needs change. This approach also reduces balance sheet strain from depreciating assets, aligning with broader shifts in technology procurement among smaller companies.
Raylo has raised over £180 million in funding and positions itself as a subscription infrastructure provider for electronics brands. The HP agreement extends its model into the UK SME market, where cost pressures, financing constraints, and refresh cycles continue to influence buying decisions.
