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). When you make the final payment, the equipment is yours. However, only the interest component of these payments is usually tax deductible.
The Hire Purchase agreement is simply a contract where the lender (the ‘owner’) allows you (the ‘hirer’) the right to possess and use an item of equipment in return for regular payments. When the final payment is made, the title to the goods is transferred to you.
For further information on the tax implications of hire purchase visit the Australian Tax Office: Hire Purchase.
Who can benefit from hire purchase?
- All businesses wishing to finance the purchase of motor vehicles and trucks, industrial plant and equipment, earthmoving equipment, business and professional equipment.
Hire purchase key features
- Repayment schedules are flexible.
- An Offer to Hire can be arranged with no deposit or an amount that suits you.
- Balloon payments at the end of the term can be arranged.
- We own the goods until the final payment is made, at which point you gain automatic ownership.
- The interest component of the rental and depreciation on the equipment are tax deductible, provided it is used to produce assessable income or the expense is necessarily incurred in carrying on a business.
- You can repay the contract before the term ends.
Hire purchase benefits
- Repayment schedules can be structured to suit your cash flow.
- You can obtain the use of goods for minimal cash outlay, so working capital is not significantly affected.
- You may be able to make use of the taxation benefits of hiring.

- Flexible repayments allow for accurate capital budgeting.
Hire purchase interest rates
- The interest rate depends on the amount being financed and the security of the applicant. It is fixed throughout the term of the loan.
Hire purchase fees and charges
- An establishment fee applies, with no applicable GST.
- A cash booklet is an additional charge
- Break costs may apply in some states
Hire purchase repayment schedules
Repayments can be made
- Fortnightly
- Monthly
- Yearly
- Quarterly
- Semi Annually
- Seasonal
- Irregular

