The Commercial Hire Purchase also known as Asset Purchase is a contract where the Financier gives you possession and use of an item of equipment in return for regular payments. When the final payment is made, the hirer owns the goods.

Key Features

• Up to 100% financing (Including GST)
• Business registered for GST using the Accruals method of Accounting may be able to claim 100% of the Input Tax Credit in the Business Activity Statement (BAS) following purchase
• Full Ownership of equipment upon final payment
• Payments may be structured – including irregular or seasonal payments
• Finance term up to 5 years
• Payments and Interest fixed for the life of the loan
• Equity in the equipment increases with each payment
• Balloon payment at end of term may be structured to lower monthly repayments

Key Benefits

• Preserves working capital
• The GST refund may be used to increase working capital, reduce the amount of the loan or offset your current GST liability for businesses using the Accruals method of accounting
• Builds equity in the equipment and your business
• Fixed payments means cash flow is easy to manage
• Interest and Depreciation are tax deductible
  To ensure suitability of this type of finance, confirmation should be sought from your accountant or financial advisor.