Introduction to Commercial Hire Purchase / Hire Purchase / CHP
A Commercial Hire Purchase / Hire Purchase / CHP is a type of commercial lease used to finance motor vehicles. The financier usually purchases the vehicle on behalf of the customer. The customer then makes regular monthly repayments for exchange of use of the vehicle. Upon the final payment to the financier the title of the goods becomes that of the customer and no further repayments are required.
There can be additional Tax advantages for those customers that operate under the Accrual method Accounting as a Commercial Hire Purchase provides the business with ownership of the goods and therefore provides the business with the ability of claiming the full GST amount as Tax input credits at time of purchase.
What are the benefits of a Commercial Hire Purchase?
- You have the choice of having a balloon if you want to reduce your monthly repayments
- If the goods are purchased for business use then claim the depreciation and the interest component as a business expense
Do you have questions about commercial hire purchase? Then call 1300 21 22 23 or Contact Us.
What are the additional benefits of a Relion Finance Commercial Hire Purchase?
- Your choice of vehicle (new or used) from a dealership or through private sales
- Our Commercial Hire Purchase loan terms range from 1 – 7 years
- We offer a fixed rate term for the life of the loan assisting you when budgeting
- There are no additional on-going fees keeping the total cost of the loan to a minimum
- The Commercial Hire Purchase is secured against the asset itself removing the requirement for additional security from bricks and mortar
- Approved customers may be able to bundle insurance and on-road costs in the loan total.
- 100% finance is available to approved customers
The information provided by Relion Finance is not financial advice. We provide information of a general nature only. If you require information specific to your situation please consult with your Accountant or Financial Planner.
