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.
- 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
- 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.