A Commercial Hire Purchase is a business finance product where the customer enters into a contract with a lender who agrees to purchase an asset such as a motor vehicle and subsequently hire this asset to the customer for a fixed monthly repayment over an agreed term. At the end of this contract term and subject to all repayments being met as arranged then ownership of the asset is passed to the customer.
- Low establishment fees and monthly fees
- Hire Purchase terms range from 1 to 5 years
- Flexibility in loan structure which can include no capital outlay, a deposit from trade in or a residual balloon payment required at the end of contract with the ability to structure repayments either monthly or seasonal depending on cash-flow.
- The Interest Rate and monthly hire repayments are fixed for the term of the Hire Purchase agreement
- If the asset is used for business purposes a tax deductions may be claimable and normally GST contained in purchase price is able to be claimed as an input credit through Business Activity Statements (BAS)
- No GST is charged on the monthly Hire Purchase payment
- The finance is secured against the asset
If you would like more information on hire purchase finance or would like to submit an application call us on (07) 33499044 or contact us now.