Commercial Hire Purchases For Low Risk Finance
If you are a sole trader, partner in a company or owner of a trading company using your vehicle mainly for business purposes then you should consider commercial hire purchase.
FinanceNEXT can help with a secured finance option with lower interest and benefits such as being able to claim the GST on the purchase upfront.
A Commercial Hire Purchase agreement uses your vehicle as the security on the loan meaning you can access a low interest rate.
This type of finance is ideal for businesses that use the cash method of accounting as they are able to claim the GST associated with the vehicle’s purchase upfront.
What Is Involved With A Commercial Hire Purchase
The financier secures and pays for a vehicle on your behalf with an offer to hire it back to you for an agreed time frame (the term). During the hire term you do not own the vehicle but you can use it as you see fit. Ownership passes to you at the end of the term and only after payment of the total price including interest, minus any residual costs.