Sydney Finance Broker

Commercial Hire Purchase

A Commercial Hire Purchase also known as CHP, Hire purchase, Asset Purchase, Term purchase and Corporate Hire Purchase is a car finance arrangement usually taken out by individuals or companies using the accrual method of accounting.

A Commercial Hire Purchase is similar to a Finance Lease in that the finance company buys the vehicle with the intention of leasing it back to you. Under a Commercial Hire Purchase agreement there will be no debt shown on your balance sheet as you are only renting the vehicle.

Advantages of a Hire Purchase

• A company taking a Commercial Hire Purchase using the accrual method of accounting may be able to claim the GST component upfront.
• Commercial Hire Purchase allow for a deposit to reduce monthly repayments.
• Not affected by interest rate increases as rate is fixed for the term.
• A Commercial Hire Purchase may consist of a balloon and has no minimum balloon requirement.
• Companies may be able to claim the entire payment as a business expenditure.

Why Use Sydney Finance Broker?

• Great low interest rates.
• No establishment fees.
• No monthly or ongoing fees.
• No payout penalties or retained interest.

Find Out More!

If you require more information about a Commercial Hire Purchase, just complete the friendly enquiry form and one of our experienced Car Finance consultants will call you back shortly or give us a call on 1300 798 873 and a short phone consultation will provide you with all the answers.