Commercial Hire Purchase
A Commercial Hire Purchase is a legal obligation between the finance provider and the hirer (the client) where the amount repayable is calculated on a fixed term and fixed rate with the option of a balloon payment. The Hire Purchase provides for the transfer of the property/product to the hirer at the end of the hire term.
The basic premise is that the full term must run otherwise penalties may be incurred. When you wish to own the asset from the outset, this type of purchasing finance is an alternative to leasing. A typical Commercial Hire Purchase structure has a term of 2-5 years (24 to 60 Months) with payments made monthly although other options are available.
You have a choice of a balloon payment depending on usage and depreciation of goods. With a Commercial Hire Purchase, the GST can be financed over the term or paid up front.
This facility is ideal when financing Motor Vehicles, Medical Equipment, Luxury Boats and Office Equipment.