Commercial Hire Purchase

By organising your Truck Finance under the arrangement of a Commercial Hire Purchase (CHP) the financier agrees to purchase the equipment on behalf of the customer, and then hire it back to them over a set period of time.

During the term of the contract the customer has full use of the business equipment however does not own it.

At the end of the contract term when the total price of the equipment (minus any residual) and the interest charges have been paid in full, the customer takes ownership of the equipment.

Key Features

• Up to 100% financing (Including GST)
  
• Business registered for GST using the Accruals method of Accounting may be able to claim 100% of the Input Tax Credit in the Business Activity Statement (BAS) following purchase
  
• Full Ownership of equipment upon final payment
  
• Payments may be structured – including irregular or seasonal payments
  
• Finance term up to 7 years
  
• Payments and Interest fixed for the life of the loan
  
• Equity in the equipment increases with each payment
  
• Balloon payment at end of term may be structured to lower monthly repayments

Key Benefits

• Preserves working capital
  
• The GST refund may be used to increase working capital, reduce the amount of the loan or offset your current GST liability for businesses using the Accruals method of accounting
  
• Builds equity in the equipment and your business
  
• Fixed payments means cash flow is easy to manage
  
• Interest and Depreciation are tax deductible