Hire Purchase Loans
Your business gains the use of equipment or other items of your choice in exchange for regular payments over an agreed period of time (terms ranging from 1 to 5 years).
The asset is your once you make the final payment. An advantage of a hire purchase is that interest component is usually tax deductible.
Overview Of A Hire Purchase
Essentially a hire purchase is an agreement whereby your have the right to possess and use the assets and in return you agree to make regular payments to the lender, who owns the goods. The title of the asset will be transferred into your name once the final payment has been made. There are some good tax reasons for choosing a hire purchase.
For further information on the tax implications of Hire Purchase visit the Australian Tax Office: Hire Purchase.
Who can Benefit from Hire Purchase?
A hire purchase agreement suits businesses that would like to purchase:
- Motor vehicles
- Yellow Goods
- Completely flexible repayment schedules
- Flexibility of a balloon payment to reduce interest paid
- $0 deposit is needed for us to organised an Offer to Hire
- Tax deduction of the interest paid
- Payout the contact in full at anytime
- You take ownership and the tile of the asset is transferred to you once the final payment has been made
Hire Purchase Benefits
- Our repayment schedules are flexible and can be tailored to meet your needs
- Claiming the depreciation is one of the taxation benefit you enjoy with a hire purchase
- You cash flow shouldn’t be effected by a hire purchase and allow you to allocate funds to other parts of your business
Hire Purchase Interest Rates
We have fixed interest rates for the life of the hire purchase agreement, which means that you don’t pay a variable rate. This means you can accurately budget for the repayments.
Hire Purchase Rates
Our rates start from 7.25%*.