Commercial Hire Purchase
As the name suggests, a Commercial Hire Purchase allows you to hire the equipment for the period of the finance and upon the last payment being made, you then take ownership or purchase the equipment. With a recent change in tax laws as of the 1st of July 2012, there is now little difference in the tax treatment of a commercial hire purchase compared to a chattel mortgage. This means that you may now claim the entire GST on the purchase immediately and depreciate the equipment, just as if it were a cash purchase. This is a suitable form of finance for longer life assets that are core to the business - e.g. plant & equipment and vehicles.
Under recent tax changes, GST is now also charged against the terms charges of a commercial hire purchase which means that the payments are a little higher than a Chattel Mortgage - however is claimed back through your GST BAS cycle.
The general features of Commercial Hire Purchase*:
See the other forms of finance:
Fully flexible finance options
Whether you need a Chattel Mortgage, Finance Lease, Rental or Commercial Hire Purchase - we can provide you with all forms of finance.
We can tailor a package to suit your needs when it comes to the type of finance that you require and the terms. We will clearly explain to you the features of each type of finance and what the general benefits are. Please remember to refer to your accountant for taxation advice.Apply now
*This information is not intended to constitute taxation advice and does not take into account your financial cirucmstances. Refer to your accountant for taxation advice.