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.
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.
A hire purchase agreement suits businesses that would like to purchase:
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 hire purchase repayments.
Our hire purchase rates start from 7.25%*.
The associated fees and charges to set up a hire purchase are as follows:
Repayments can be made:
Click here to review our Comparison Table of Loan Products
Chattel Mortgage
Your Business’s cash income is considered and balloon payments are available.
Hire Purchase
Retain the asset at the end of the contact and claimed back depreciate.
Sale and Leaseback
With a sale and leaseback you can be paid cash for your asset(s).
Finance Lease
A fixed interest rate for the tern of the loan and a balloon payment option are some feature of a finance lease.
Novated Lease
A novated lease is a great option of a business when including a car as a part of an employee’s salary pack.
Operating Lease
An operating lease is a very straightforward lease agreement.