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Access Cost-effective Hire Purchase at Lower Rates
As specialists in the full selection of commercial lending options, we provide access to lenders to achieve lower rates for more cost-effective Hire Purchase agreements. This form of commercial funding can be extremely effective for many enterprises for the purchase of assets such as equipment, plant, machinery, trucks and motor vehicles.
Rates are competitive, tax benefits are attractive and HP can be compatible with both the cash and accruals methods of accounting. Making HP an option for consideration when acquiring new assets.
This won't affect your credit score
Compare Hire Purchase (HP) Rates with other Asset Acquisition Finance Products
HP offers a highly competitive rate in line with Chattel Mortgage. Rates do vary with the credit products and will be dependent on individual applications. With our extensive market coverage we are well-placed to secure lower rates across our portfolio. Refer to our latest rates for initial planning and contact us for a quote, specific to your application and acquisition.
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Disclaimer: The comparison rate displayed is calculated for a loan of $30,000 over 5 years. The results from this calculator should be used as an indication only. Quoted repayments are based on advertised rates and do not include lender fees and charges. Results do not represent either quotes or pre-qualifications for a loan. The specific details of your loan will be provided to you in your loan contract. It is advised that you speak with us so that we can provide you with advice that is tailored to your situation.
Today's best rate
Finance Equipment From
4.99 % Fixed
* The interest rate is calculated on a secured loan for commercial use, effective 21/05/2024 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.
Today's best rate
Finance Equipment From
4.99 % Fixed
* The interest rate is calculated on a secured loan for commercial use, effective 21/05/2024 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.
How to Calculate Hire Purchase Repayment Estimates
To easily compare HP with other credit products and to compare repayment estimates on different types and models of equipment and vehicles, operators can use our HP Calculator. This device is easy to use and provides instant estimates based on the values entered. The results are estimates and users are advised to contact us for a confirmed quote specific to their requirements.
- Easy to use online calculator.
- Compare Hire Purchase with other finance products.
- Quickly compare HP repayment estimates on makes and models.
Finance Calculator
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What is Hire Purchase?
HP does not refer to renting or hiring but is a commercial credit product for funding asset acquisitions. As with other commercial credit products, at the end of the term, the borrower has ownership of the goods.
During the credit term, the borrower has full use of the goods and is responsible for the ongoing running costs and expenses. When the final instalment and balloon are finalised, ownership of the assets is transferred to the borrower from the lender.
HP is compatible with both accruals and cash accounting methods, making this an option for many Australian enterprises.
- Acquisition financing product.
- Fixed rates, fixed terms – 12 to 84 months.
- Balloon option.
Get Tax Benefits with Hire Purchase
The monthly HP instalments are not fully tax deductible, only the interest included in the instalments is deductible. The major tax benefit realised with HP funding is through depreciating the assets in line with the ATO scheduling.
The total amount of GST on the assets can be claimed on the BAS immediately following purchase. This applies to enterprises registered for GST and implementing both the accruals and cash accounting methods.
Compare Credit Solutions: Hire Purchase with Leasing, Chattel Mortgage, Rent-to-Own
Enterprises have a selection of four main credit options to fund assets – Chattel Mortgage, Leasing, Rent-to-Own and HP. Deciding which is most suitable for the operation will involve assessing the suitability to the accounting method, tax benefits and structure of the facility. We advise clients to discuss this decision with their accountant.
With Leasing, Rent-to-Own and HP the lender holds the ownership of the asset whereas with Chattel Mortgage, ownership is immediately transferred to the borrower on settlement.
With Leasing and Rent-to-Own the monthly credit payments are deductible. With HP and Chattel Mortgage, the major tax deduction is realised with depreciation of the asset.
Interest is deductible for all forms of credit.
There are differences in how GST is applied and claimed with commercial credit products. With Leasing and Rent-to-Own GST is charged on the monthly payments and claimed on the relevant BAS. With HP and Chattel Mortgage, the entire amount of GST applicable to the purchase may be claimed in full after settlement on the relevant BAS return. No GST is applied to the repayments for HP and Chattel Mortgage.
In general terms, HP has similarities and differences with the other options.
Access All Types of Hire Purchase Financing
We provide HP funding for all types of assets across all industries. This facility can be effective for both new and used plant, machinery, equipment, trucks and vehicles.
- Truck Hire Purchase
- Heavy Vehicle Hire Purchase
- Light Commercial Van Hire Purchase
- Equipment Hire Purchase
- Used Machinery Hire Purchase
- Hie Purchase for Business Vehicles
Hire Purchase Solutions for Many Business Set-ups
HP can be an effective solution for many different types of enterprises that have an ABN. It can be used by operators of all sizes across all industry sectors.
- Hire Purchase for SMEs, Sole Traders, Self-employed
- Partnership Hire Purchase
- Hire Purchase for ABNs
- Corporate Hire Purchase
- Hire Purchase for Unit Trusts, Family Trusts
- Hire Purchase for agricultural, medical, construction, engineering, earthmoving, IT, professionals, retail and other sectors.
Fast Approval of Hire Purchase Financing
As specialists in commercial lending, we have vast lender market coverage and the capabilities to source lower rates and the right lender for each client. Approvals on many applications can be received within 24 hours to expedite the acquisition process.
FAQs
Hire Purchase Financing
No. HP is a commercial financing product where the borrower owns the goods at the completion of the credit term.
Only the interest included in monthly HP payments is tax deductible. A tax benefit with HP is received when the asset is depreciated.
No. An ABN is essential to be eligible for commercial financing products but being registered for GST is not an essential criteria.
A wide range of new and used machinery and equipment may be financed with HP. The suitability of a credit product will depend on the suitability to the enterprise.
A balloon is a percentage of the amount requested in the loan which is set aside to be finalised in full after the final monthly HP payment is made. It is an option.
The interest rate for HP will be subject to lender approval of the individual application. In general terms, HP attracts competitive rates in line with Chattel Mortgage.
Yes. All enterprises with an ABN can apply for HP for motor vehicle acquisitions.
HP can be used for funding purchases of light commercial vans. New enterprises may not meet lender approval criteria and may seek No Doc and Low Doc options through specialist lenders and brokers.
Terms on HP agreements can vary from as short as 12 months up to 84 months, subject to lender approval.
Buyers can use an online calculator to compare repayment estimates on HP with Chattel Mortgage, Leasing and Rent-to-Own.
