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Commercial Hire Purchase (CHP)

Supplier: Alliance e-finance

Thinking of financing a car? Or want to invest in a long lasting capital good? Then a Commercial Hire Purchase (CHP) may be the right option for you.


Ownership of the item is the goal of any one undertaking a CHP contract. If required, you have the option of electing to include a final lump sum balloon payment. At the end of a CHP, you then pay the balloon (similar to a residual) to cover the remaining cost of the item.

Under a CHP, the item needs to be included on the balance sheet meaning the monthly payments are not tax deductible.  However, the depreciation of the equipment as well as the interest paid over the contract may be tax deductible*.

At the end of a CHP term, the client does not get the choice to hand back the equipment. If a balloon is applicable, the balloon must be paid, however the client may choose to pay the contract out before the CHP term expires.

We suggest you call us on and speak to one of our friendly Relationship Managers, who can advise if a CHP is suited to your needs.

Our service does not end at contract settlement, it only begins there. Alliance e-finance will deliver throughout contract and asset management phases of each contract. Call us and ask how Alliance e-finance can deliver true value to your business!

For more information on our products and services, please visit our new website.

* Disclaimer:
The information contained on this page is intended only to provide a summary and general overview on matters of interest. The information is not intended to be comprehensive nor does it constitute legal or other professional advice. Before acting on any of the information contained on this page you should seek legal or other professional advice.