How
does it work
Commercial Hire Purchase
is the appropriate option for your business if the ultimate
intention is to own the vehicle or equipment outright.
What is CHP?
The finance company gives
you the immediate use of the vehicle or equipment of your choice in
exchange for regular payments over an agreed period of time (terms
range from 1-5 years). Upon making the final payment, you become the
outright owner of the vehicle or equipment.
Major benefits to your
business:
-
Tax is reduced by
claiming Interest charges and Depreciation.
-
Fixed payments for the
term of the agreement allow for more accurate budgeting and
protect you against
interest rate fluctuations.
-
Payments can be
structured to suit your operation's cash flow.
-
Your business retains
its cash reserves for use in unexpected events or to earn income
through investment
or other business activity.
-
You may build up equity
in your vehicle or equipment.
-
Upon making the final
payment at the end of the term, you become the outright owner of
the vehicle or
equipment.
-
You can elect to make a
balloon payment at the end of the period.
-
In most cases a deposit
is not required, however should you wish to make one you will
benefit from either
lower repayments, a shorter term or reduced interest charges.
-
Commercial Hire Purchase
does not restrict existing lines of bank credit.
Download a
Commercial Hire Purchase Application Form
Other facilities available to you include:
Finance Lease
Sale and Leaseback
Asset Purchase
Novated Lease
