Commercial Hire Purchase

Commercial Hire Purchase is a facility that allows you to “hire” goods over an agreed period of time in return for an agreed schedule of payments.

A Commercial Hire Purchase agreement is much like a loan and payments are made up of principal and interest.

A Commercial Hire Purchase agreement can be based on 100% finance or an agreed deposit amount. A balloon payment can also be arranged at the end of the loan to reduce the repayment amounts during the term of the loan.

If the “hired” item is used solely for earning assessable income, the interest component of the rental and depreciation on the item are tax deductible. We recommend that you speak with your accountant for confirmation and more information on this matter.


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