Commercial Hire Purchase
A Commercial Hire Purchase (CHP) is a finance product where the customer hires a vehicle or equipment from a lender for a fixed repayment amount over a predetermined period of time
Commercial Hire Purchase is most effective for businesses that use the accrual method of accounting because it provides the business with ownership for tax purposes and allows for full Tax Input Credit for the GST on the purchase at their next BAS lodgement.
Key benefits of Commercial Hire Purchase finance:
- Flexible loan term that can range from 1-5 years depending on your needs
- The option for a residual payment
- It is possible to claim the interest on the payments and the depreciation as a business expense so long as the equipment is used for business purposes
- Flexible repayment options that suit the needs of you and your business
The equipment itself is used as the security for the loan so that no other "brick-and-mortar" security is needed.
LKFS can compare a large amount of loans from all over the country to make sure the return on your investment is as high as possible, we've been doing it for over 21 years, so you can rest assured that you're getting the best deal available.