Commercial Hire Purchase (CHP, HP, Asset Purchase)

  • Most Common vehicle and equipment finance
  • Loan term 12-60 months
  • The GST inclusive amount is financed
  • Other payment structures such as seasonal payments are accepted
  • Deposit or trade in can be used to reduce the loan amount (Deposit Allowed)
  • Balloon payment is user defined and expressed as a $ value
  • Accrual accounting clients can claim full GST at next BAS
  • Interest and Depreciation are Tax Deductable
  • Chattel Mortgage

  • Most Common vehicle and equipment finance
  • Loan term 12-60 months
  • The GST inclusive amount is financed
  • Deposit or trade in can be used to reduce the loan amount (Deposit Allowed)
  • Balloon payment is user defined and expressed as a $ value
  • Asset Sold to client so financier lodges a “chattel mortgage” over goods as security
  • Higher fees due to stamp duty on mortgage
  • Accrual/ Cash accounting clients can claim full GST at next BAS,Interest and Depreciation are Tax Deductable
  • Finance Lease

  • GST exclusive amount is financed
  • Residual payment is expressed as a %value and must meet ATO Standards
  • Client indemnifies financier for the residual amount
  • This is a rental product
  • Only monthly payments are Tax Deductable (expensed via P&L)
  • To choose which product best suit you.
    You need to answer the following questions:

  • Do you want to own the asset at the end of the term?
  • Is your account on Cash or Accrual basis?
  • Will the asset depreciate rapidly?