| Commercial Hire Purchase |
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A Commercial Hire Purchase or Asset Purchase agreement is a contract
which enables commercial users to purchase goods by means of time
payment with guaranteed end ownership. Equity is increased with each
payment and an Option to Purchase may be given at any stage during the
contract. The benefits of a CHP include, the choice of financing 100% of invoice price OR contributing some form of deposit, applicable depreciation and interest is usually tax deductible, monthly payments that can be structured to suit your cashflow, guaranteed end ownership of the goods, the option to purchase the equipment at any time during the term of the contract, and all equity in goods is retained by you. A CHP facility permits flexible repayments, structured to suit your cashflow. You can vary the money you pay to match the money coming into your business. For example crop sowing time vs crop harvest time. As with both Leases and CHP facilities you have the option to include a balloon or residual payment and our flexible terms mean you can choose the length of the asset purchase. The life of an asset purchase usually depends on two things: how much you want to pay per month, and the life of the asset - you shouldn't be paying off equipment that is no longer contributing towards your income!
For more information about our Commercial Hire Purchase product, contact us today. Calculators |
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