Commercial Hire Purchase

A Commercial Hire Purchase agreement is used when ownership of the asset is in the business’s key interest. Built into the Commercial Hire Purchase is an acknowledgement that the hirer gains automatic ownership upon making the final payment. A Commercial Hire Purchase offers some additional flexibility over Finance Leases by allowing you to make up-front deposits if you desire.

  • Full Use, at a Known Cost
    Like a Finance Lease, you have full use of the equipment during the term. You have the security of a predictable monthly payment, which can be lowered by adjusting either the initial deposit or the end of term final or ‘balloon’ payment.
  • End of Term Options
    At the end of the Commercial Hire Purchase term, ownership is ensured by simply paying the pre-determined final payment or ‘balloon’ (which is similar to the residual value on a Finance Lease). However, you do not usually have the option of handing the equipment back as you do with a Finance Lease or Rental facility.
  • Tax Effective Asset Management
    Under a Commercial Hire Purchase agreement, GST is payable on both the purchase price of the equipment and the term charges and fees. The GST is payable upon settlement of the agreement, and can either be included in the loan or paid up-front.  If you are registered for GST then whether you are noted as Cash or Accrual for your BAS, you can claim the GST paid on the purchase price of the equipment up-front. The GST charged on the term charges and fees can be claimed back progressively over the life of the agreement.*

At Classic Funding Group, our expert staff will work with you to build a solution to help you get the equipment you need to grow your business. We tailor each equipment finance solution specifically to the needs and capacities of each client.  Contact us on 1300 780 895 to discuss your equipment and the finance solution that best suits you.


*We do not provide financial advice. You should obtain your own financial advice on the tax and accounting treatment of any finance solution you choose.