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Commercial Hire Purchase

Commercial Hire Purchase: 

  • Most common vehicle and equipment finance product is commercial hire purchase
  • Loan term of 12 – 60 months available for commercial hire purchase.
  • Supplier/dealer must invoice the lender under prescribed format for commercial hire purchase.
  • Title passes to the client once all payments are made
  • The GST-inclusive amount is financed for commercial hire purchase.
  • Deposits and /or trade-ins can be used to reduce the loan amount for commercial hire purchase.
  • Loan can be fully amortised (nil residual balloon) or a residual balloon payment can be factored in to reduce the monthly payments.
  • Other payment structures such as seasonal payments are available for commercial hire purchase.
  • Customer interest rate is fixed for the loan term for commercial hire purchase.
  • The repayments and residual balloon payments do not include a GST component for commercial hire purchase..
  • For asset depreciation and interest deductibility purposes, the asset is effectively “owned” by the client even  though title does not pass until loan maturity.
  • Clients on an accrual accounting basis for GST can claim the full GST component back at commencement of the loan.
  • Clients on a cash accounting basis for GST must claim the GST component back proportionately across the loan term.
  • Therefore, clients on a cash accounting basis for GST are likely to be unsuited for a for commercial hire purchase.

Benefits of Commercial Hire Purchase  ( CHP)

  • Client get the ownership of the asset from the time of purchase.
  • Client will get the benefit to claim GST impute credit.
  • Client will get tax deductions for interest payment and depreciation as per tax table.

Commercial hire purchase is one of the preferred lending option for any business type in any industry. Using commercial hire purchase option client can by truck, business equipments, yellow goods, earth moving equipments. No matter your equipments or trucks are new or old we can help you to arrange finance as commercial hire purchase.Client can use the benefit of commercial hire purchase to purchase their new and old equipment for business and pay the loan off with extra repayments to save money interest. We are offering very competitive rate for commercial hire purchase for our clients.

Simply send us the details of your desired purchase and a brief of your financial situation to get a free quote for commercial hire purchase.

We are offering No Doc Leasing Full Doc Leasing and Low Doc Leasing options for commercial hire purchase  ( CHP) applications.

Click here to submit a query for free assessment for commercial hire purchase.

Click here to read documentation process for Commercial hire purchase (CHP).
Click here to view interest rates for commercial hire purchase.