A hire purchase agreement provides finance for your business to purchase goods such as motor vehicles, trucks, earthmoving, industrial plant and professional equipment.
The hire purchase agreement is a contract where the finance company (the "owner") gives the "hirer" possession and use of the equipment in return for regular repayments. When the final payment is made, the "hirer" owns the goods.
The equipment being purchased is normally sufficient security for the finance - your other business assets are not required as security.
Features of a Hire Purchase Agreement:
No deposit finance is available to approved customers.
Loan terms of one to five years are available.
The interest rate and repayments are fixed for the term of your contract, although you have the flexibility to repay the contract in full before the term ends.
Repayments an be tailored to suit your cash flow. You can also have a balloon payment at the end of the loan to reduce the repayments throughout the term.
Depreciation on the equipment and the interest component of the rental are tax deductible if it is used to produce assessable income or the expense is necessarily incurred in carrying on a business. (You should speak to your accountant for information in relation to taxation benefits.)
If you would like a QUOTE or would like more information about Hire Purchase finance options please make an online enquiry
Or call us on 1300556246 to talk directly with one of our Business Finance Consultants.
