Commercial Hire Purchase
Commercial Hire Purchase, sometimes called Offer to Hire, is simply a contract where the financier purchases the equipment and allows you to use it in return for regular payments. Once the final payment has been made, the equipment belongs to you.
- Anyone buying business equipment who wants to own the equipment once the final payment has been made.
- Motor vehicles, trucks, industrial plant and equipment, earthmoving machinery, professional equipment.
- Depreciation of equipment and interest may be tax deductible.
- No deposit necessary.
- Doesn’t tie up other assets – equipment being purchased is generally enough security.
- Flexible payment schedule can be structured to suit your cash flow.
- A balloon payment at the end of term can be arranged to reduce the regular repayment amounts.
- Normally input tax credit can be claimed back on the first BAS statement when a business is on a GST Accrual basis. If the business is on a GST Cash basis, the input tax credit is normally claimed back and amortised over the life of the loan.
- Term 1 – 7 years
- $15,000 +
- Pre-approved bulk credit limits
- Master loan documentation
- Fixed interest rate
- Flexible repayments and methods available
- GST on terms charges apply