Commercial Hire Purchase

Commercial Hire Purchase is the appropriate option for your business if the ultimate intention is to own the vehicle or equipment outright.

What is CHP?

The finance company gives you the immediate use of the vehicle or equipment of your choice in exchange for regular payments over an agreed period of time (terms range from 1-5 years). Upon making the final payment, you become the outright owner of the vehicle or equipment.

Major Benefits to Your Business:

Tax is reduced by claiming Interest charges and Depreciation. Fixed payments for the term of the agreement allow for more accurate budgeting and protect you against interest rate fluctuations. Payments can be structured to suit your operation’s cash flow. Your business retains its cash reserves for use in unexpected events or to earn income through investment or other business activity.

You may build up equity in your vehicle or equipment. Upon making the final payment at the end of the term, you become the outright owner of the vehicle or equipment. You can elect to make a balloon payment at the end of the period. In most cases a deposit is not required, however should you wish to make one you will benefit from either lower repayments, a shorter term or reduced interest charges. Commercial Hire Purchase does not restrict existing lines of bank credit.