Commercial Hire Purchase

The finance structure allows your business to take immediate possession of the vehicle or equipment while spreading the cost over fixed, regular repayments across an agreed term (typically 1–5 years).

Throughout the term, you retain full use of the asset to generate income and claim eligible tax benefits such as depreciation and interest deductions.

After the agreement, once the final repayment has been made, full ownership of the vehicle or equipment transfers to you.

Tax is reduced by claiming Interest charges and Depreciation. Fixed payments for the term of the agreement allow for more accurate budgeting and protect you against interest rate fluctuations.

Payments can be structured to suit your operation’s cash flow. Your business retains its cash reserves for use in unexpected events or to earn income through investment or other business activity.

You may build up equity in your vehicle or equipment. Upon making the final payment at the end of the term, you become the outright owner of the vehicle or equipment. You can elect to make a balloon payment at the end of the period.

In most cases a deposit is not required, however should you wish to make one you will benefit from either lower repayments, a shorter term or reduced interest charges.

Commercial Hire Purchase does not restrict existing lines of bank credit.