A Hire Purchase is an agreement between the financier (owner of the asset) and you (the hirer of the asset). As the hirer of the asset, you take possession of the asset in return for regular repayments but you are not the owner of the asset. You take full possession of the asset once the final payment has been made to the financier.
Available to individual business professionals, partnerships or companies.
The type of asset you can purchase is endless: Motor vehicles, buses, trucks, trailers, plant, equipment, earthmoving machinery, tractors and many other assets.
If you have purchased the goods within 6 months you can also refinance back by way of a sale and buyback.
- No deposit is required, but you may still contribute to reduce the amount financed.
- The asset being financed is in most cases sufficient enough security for the financier.
- For taxation purposes you can claim interest and depreciation as a tax deduction depending on the amount of business usage from the asset, plus you can also claim the GST upfront on the purchase price of the asset depending on your tax setup (as each individual’s or company’s set up is different please see your accountant for further clarification and guidance about the tax benefits).
- Tailor your repayments to suit your cash flow, for example, put a balloon payment at the end to reduce your repayments.
- The interest rate is fixed for the term of the loan which means your repayments don’t alter.
- Pay the loan out in full at any time.
- You can finance the asset from 1 year to 5 years.
- Finance amounts start from $10,000 and upwards.
- Choose your own repayment frequency to suit your business. Monthly, quarterly, semi – annually, annually, or irregular.
- And make your repayments via D-debit, BPAY, coupon book and periodically.