It’s also called a term purchase, offer to hire, hire purchase, asset purchase, CHP or HP
How do they work?
Zenith Finance purchase the equipment or vehicle on your behalf. Then we hire it out to you over a contracted time frame. During this period, we still own the vehicle or equipment.
When your contract term is finished and you’ve paid in full, you own the equipment or vehicle.
What are the benefits of commercial hire purchase?
- Deposit option – if it suits, you can stat your contract with a big payment
- Balloon payment on residual - you can make a large final payment at the end
- Flexibility – payments can be structured monthly, quarterly, half-yearly and yearly
- Short or long term contracts - from 1 to 5 years (or longer for amounts over $200,000)
- Easy budgeting – your repayments are fixed throughout so you always know what you’re up for
- Option to buy anytime – you can purchase the equipment/vehicle during the term of your loan
- Tax advantages – deductions available when used for business, and on depreciation
- Pay less GST - not charged on your monthly repayments or residual payment
- Claim on GST – for the equipment/vehicle cost if you are registered.