Compare Commercial Hire Purchase (CHP) Interest Rates Against Other Loan Products
This kind of commercial loan is one of several options in selecting financial options for their asset acquisitions. In this comparison table, you can see the interest rates that we are currently achieving for a vast selection of lending products. Use the calculator to compare a deal with other lending types for your purchase. Enter the data around your proposed loan and repayment estimates will be displayed alongside each lending type.
What Is A Commercial Hire Purchase?
Commercial Hire Purchase, usually referred to as CHP, is a very popular form of commercial loan as it suits many businesses and the purchase of many goods and assets. The business loan structure is relatively straightforward with fixed elements and a range of tax and other benefits.
Due to the flexibility and popularity of CHP, all major banks and many lenders actively offer it as a form of business lending. Finding the right lender and sourcing the best business interest rates can involve a time-consuming process.
To save you time in sourcing the best CHP deal, we deliver you quick connection and access to many lenders with a short-list, hand-selected by our finance experts as best-fits for your requirements.
- Large Selection of Leading Lenders
- All Major Australian Banks
- Specialist Lenders to Suit All Sectors
- Specialist Equipment, Motor Vehicle and Marine Lenders
- Professional Lending Brokers to Streamline Your Financing
Commercial Hire Purchase involves a contract between the lender and borrower where the lender purchases the goods/assets and essentially hires those goods back to the borrower at a monthly hire or repayment fee. The borrower has use of the goods from the time of the purchase and finalisation of the loan and is responsible for all costs and expenses for those goods over the loan term.
Wide Range of Goods and Asset Purchases
- CHP for Commercial Car Loans
- Marine CHP for boats and other vessels
- Equipment financing for machinery, heavy vehicles
- Finance Trucks
- CHP for business equipment
CHP is a quite a flexible form of lending as it can be tailored to suit individual commercial requirements to ease cash flow and work positively towards achieving financial goals.
- Lender purchases the goods and holds title of ownership until the borrower finalises all payments.
- Borrower has used of the goods from time of purchase and responsibility for ongoing expenses. For cars, trucks and boats that includes rego, insurance, servicing etc.
- Simple loan format – fixed interest rate, fixed loan term, fixed monthly repayment, balloon.
- Loan term dependent on the lender and the particular goods. Some lenders have minimum and maximum CHP terms.
- Optional balloon payment. This is usually represented as a percentage of the purchase price of the goods which is not covered in the monthly repayments but due for payment at the end of the loan term. When due, the balloon may be paid as a lump sum or refinanced with a new loan.
- Suitable for new and used goods subject to individual lender guidelines in relation to the age of used goods.
- Suits cash or accrual accounting method.
- GST on the purchase price of the goods can be claimed on the ensuing BAS.
- As GST is claimed at the outset, it is not charged or claimable on the principle component of the repayments. GST is not charged on interest. GST is charged on fees and charges.
- Only the interest component of the CHP repayment each month is tax deductible.
- Balloon is not tax deductible.
- Asset depreciation is in line with ATO guidelines.
CHP Suits Many Businesses, All Industries
Commercial organisations should consult with their accountant in determining if CHP is the finance type that will deliver the greatest benefits to their individual operation for that particular purposes. But in general, all types of structures and sizes may be eligible for CHP
- Small Businesses in Australia
- Family Operations
- Family Trusts and Unit Trust Operations
- Sole Traders
Sourcing a Commercial Hire Purchase for Your Purchase
Our commercial loan company has done a lot of the hard work for you by bringing together a large number of banks and lenders in our hub and giving you direct access to a shortlist of lenders that match your requirements.
Save time, save hassle. Just connect with us for banks, brokers and lenders to request a quote for your loan.
Connect with us for lenders that may assist you with a CHP quote.