HP has launched a device subscription service for UK small businesses with Raylo, its first subscription offer for that market in the UK.
The service allows smaller companies to subscribe to selected HP devices on rolling or fixed monthly terms instead of buying hardware outright. Raylo handles the programme's back-end operations, including credit underwriting, fulfilment, returns, refurbishment and redeployment.
The launch adds HP to a growing list of hardware brands using Raylo's platform for subscription sales. Apple, LG and PlayStation already run subscription programmes through Raylo, reflecting a broader shift by electronics brands towards recurring access models rather than one-off transactions.
HP is targeting a large share of the UK business base. Small and medium-sized enterprises make up 99.8% of the country's 5.7 million private sector businesses, according to figures cited by the companies.
For many of those firms, access to technology remains a financing challenge. Smaller businesses often have to choose between taking on debt, stretching budgets or continuing to use older devices when investing in new equipment, the companies said. They also cited data showing that 43% of UK small businesses rely on external financing.
Subscription model
Under the arrangement, businesses pay a monthly fee for selected HP devices and can return them when they are no longer needed or when the subscription ends. Raylo then refurbishes the returned hardware and redeploys it to another customer.
The process is intended to extend the usable life of devices and keep them in circulation for longer. It also gives HP a route into a device access model that can generate repeat customer relationships beyond a single hardware sale.
For Raylo, the partnership adds another major brand to its portfolio at a time of rising subscription demand. Raylo said it reached USD $100 million in annual recurring revenue, up 60% year on year, and added 41,500 new subscriptions between April and June. More than a quarter of a million customers have chosen subscriptions over outright purchases to date, it added.
Repeat demand is also rising, with returning subscribers upgrading devices or adding new ones at a rate up 89% year on year, according to Raylo.
Cash flow focus
The offer to small businesses centres on preserving cash flow by avoiding large upfront hardware purchases. Instead of carrying depreciating assets on their balance sheets, businesses can spread the cost through monthly payments and return devices to the cycle when their needs change.
The approach reflects wider changes in technology procurement, particularly among smaller firms seeking access to current devices without tying up capital. It also aligns with a circular resale and reuse model that subscription providers say can improve asset recovery and reduce waste.
Karl Gilbert, Chief Executive Officer and Co-Founder of Raylo, framed the tie-up as part of a wider change in customer behaviour and brand strategy.
"We're proud that HP has chosen Raylo to power its first subscription offering for small businesses. More and more, people want flexible access to premium technology rather than a one-off purchase, and leading brands are moving with them. HP's launch of subscriptions with Raylo marks a major step in that shift, and it means small businesses can now access the tech they need on terms that actually fit with how they work," said Gilbert.
Ruth Patterson, Managing Director, HP United Kingdom and Ireland, said the offer is designed to give smaller companies another way to acquire equipment.
"Small businesses need technology that can keep pace with their ambitions, but how they access that technology needs to work for them too. By working with Raylo, we're giving UK small businesses greater choice and flexibility in how they access HP technology, without the need for a significant upfront investment. It's another way we can make it easier for growing businesses to get the tools they need, when they need them," said Patterson.
Raylo has secured more than GBP £180 million in funding to date and has positioned itself as a subscription infrastructure provider for electronics brands looking to build device access programmes. The HP agreement extends that model into the UK small business market, where cost pressure, financing constraints and refresh cycles continue to shape buying decisions.