A Commercial Hire Purchase will help your business grow and allow you to expense up to 100% of the loan repayment, saving you on tax! Talk to one of our business finance managers today and get yourself the best loan, the lowest interest rates, and the maximum benefit for your business
A Commercial Hire Purchase, or a CHP, is a business loan which is used to purchase vehicles or equipment.
When you take out a Commercial Hire Purchase the finance company purchases the car on your behalf and “hires” it to you for regular monthly payments. Once the final payment is made, or balloon is paid out, the ownership transfers to you.
Additionally, you may decide to trade in or sell the vehicle at any time. If at the end of the hire term you want to keep the vehicle or equipment you can do so by refinancing any residual payment that might be due.
A Commercial Hire Purchase is available for all business customers requiring use of a vehicle or equipment for business purposes. This includes companies, trusts, partnerships and sole traders.
It traditionally suits businesses who are registered for GST. However, on July 1 2012, the treatment of GST on CHP’s was changed and it is recommended you discuss this with your accountant.
As an alternative you and your business may also benefit from a Chattel Mortgage or Finance Lease. Our Business Finance Managers will be able to explain the features and benefits of each loan type for you.
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