Commercial-Hire-PurchaseWith  Commercial Hire purchase you enter into an agreement with your lender to use the asset or equipment for an agreed term.  The lender “owns” the equipment and payments are made during the term by you.


When you make the final payment ownership is transferred to you.  You may purchase the equipment at any time during the agreement.

Benefits of Commercial Hire Purchase:

  • Finance up to 100% of the asset – With Commercial Hire Purchase you can finance the full purchase amount of the asset you are purchasing as well as the GST component.  This means you can avoid having to pay a large lump sum up front and use your working capital in the business for day to day expenses.
  • Flexible payments solution – Manage your cash flow by choosing payments that fit in with what you can afford.  You can customise your payment suit seasonal cash flow.  You can arrange to make payments so that you fully purchase the asset by the end of the term of the agreement.  You can also arrange a balloon at the end of the loan.
  • Interest and depreciation may be tax deductible – Commercial Hire Purchase finance can have considerable tax benefits for businesses.  This type of finance is best suited for businesses who manage their accounting on an accruals basis. If your business uses the asset to generate income you may be able to claim a GST credit for any GST included in the purchase price of the goods.
  • Fixed repayments and interest rates – fixed rates make it simpler for tax reporting  and helps with cash flow budgeting.

For more information on Commercial Hire Purchase and other Asset finance options visit our Frequently Asked Questions on Vehicle and Asset Finance.

Contact us to  discuss commercial hire purchase as on option for financing your assets or equipment.

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