A Commercial Hire Purchase (CHP) facility allows a business to obtain equipment or vehicles by paying hire charges over a fixed period for a fixed rate.
Under a CHP facility the lender takes ownership of the asset being funded and hires it back through regular instalments.
Once all payments are made to pay back the facility, the ownership of the asset automatically transfers to your business.
You get flexiblity in terms of repayment options under a CHP. You can choose to pay back in equal instalments, have a balloon payment at the end of the fixed term to reduce your monthly repayments or fully amortise over the term, you can choose to put in a lump sum or have seasonal payments to suit your business cashflow.
Key Benefits of a Commercial Hire Purchase
Full ownership of the equipment upon repayment of loan
Flexible term and repayment options
Up to 100% financing (including GST)