Commercial Hire Purchase
Available for companies and business professionals to buy business goods such as motor vehicles, trucks, industrial plants, professional or earthmoving equipment.
How it works
The hire purchase agreement is a contract where the finance company (the “owner”) gives the “hirer” possession and use of an item of equipment in return for regular payments. When the final payment is made, the “hirer” owns the goods.
Depreciation on the equipment and the interest component of the rental are tax deductible if it is used to produce assessable income or the expense is necessarily incurred in carrying on a business. Speak to your accountant for further information about tax benefits.
An offer to hire can be arranged with no deposit or an amount that suits you.
Free up other valuable assets
The equipment being purchased is normally sufficient security for the finance – your other business assets are not required as security.
Match your cashflow
Tailor the repayments to suit seasonal cash flow. You can also arrange to make a balloon payment at the end of the loan to reduce repayments throughout the term.
You have the flexibility to repay the contract in full before the term ends.
The repayments are fixed throughout the life of the loan.