Commercial Hire Purchase

The main features & benefits of a 'Commercial Hire Purchase' are

  • Definitely one of the most commonly used finance packages used today!
  • As the name clearly says commercial hire purchase, which involves the client/customer hires the goods or vehicle from the financier of lender for a fixed monthly repayment over a set period of time, usually being up-to 60 months.
  • The client/customer agrees to pay the monthly repayments to the financier, and the financer therefore agrees that the client/customer has the use of the goods/vehicle for the term of the contract, but is not the owner of the goods of vehicle, until it is fully repaid.
  • The monthly repayments, interest rate and term are all fixed
  • You can include a cash deposit and or trade in to reduce the loan amount and therefore monthly repayments as well!
  • Clients/customers who are registered for GST can make a claim of the GST in the vehicle price
  • The security that the financier takes are the goods/vehicle in question only
  • This type of lending, CHP, mostly suits the sole trader, companies and partnerships, who have been set-up on an accruals basis by their Accountant. Therefore businesses using accruals accounting system can claim the GST as a lump sum on their next BAS statement
  • On the portion used for business purposes, the hirer/client/customer can claim depreciation and is capped at the depreciation limit being $57,466) and the interest charges on the contract as a tax deduction.


If you have any queries regarding any Finance, Mortgage or Insurance or any other matter,
please don't hesitate to contact our professional team at FLR Solutions on:

0415 280 555 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

or Simply fill out our enquiry form and we will promptly contact you


 

 

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