Also known as a Corporate Hire Purchase (CHP), a Hire Purchase (HP) or an Offer to Hire, a Commercial Hire Purchase is the most common type of vehicle finance for businesses. We offer:
A Commercial Hire Purchase (CHP) is a type of car loan commonly used by Australian businesses to finance work vehicles. As part of a CHP, a lender purchases the desired vehicle and then 'hires' it back to the business in exchange for payment.
Within CHPs, customers have access to a variety of flexible loan repayment structures. The benefits of Commercial Hire Purchases include:
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Please note: This is an estimate provided for illustrative purposes only, and is based on the accuracy of information provided. It does not constitute a quote. Additional fees and charges may apply dependent on your individual circumstances. Fees such as early repayment costs and establishment fees are not accounted for in the examples of weekly repayments. Interest rates may be subject to change throughout the term of the loan.
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Each type of business car loan has its own unique benefits, suited to different sets of business requirements. Deciding on the most suitable car loan for your business is as simple as weighing your requirements against the different benefits each type of loan offers.Read more
Also known as a Hire Purchase or an Offer to Hire – is a common type of fixed rate car loan for businesses. As part of a CHP, a financial lender will agree to purchase the GST-inclusive amount of a vehicle, which will then be lent back to their client over a pre-determined period of time.Read more
Commercial Hire Purchases offer a range of benefits. These include flexible repayment (1–5 years) terms, as well as fixed repayment costs, so you always know how much you'll pay and when. Depending on your situation, they can also be more affordable than other commercial loans.
Vehicles obtained via Commercial Hire Purchase can be used almost identically to those purchased outright. Customers can use their vehicles as they see fit and are entitled to make necessary modifications to them – such as adding branding to the vehicle's exterior.
Goods and Services Tax (GST) is payable on the purchase price of your vehicle and on term charges and fees. You can pay these GST charges up-front or they can be factored into your regular repayments.
If your business is using the cash or accruals accounting method (and is registered for GST), then you can claim the GST paid on the purchase price when you lodge your next Business Activity Statement (BAS). The GST charged on interest (term charges) and fees can be claimed as Input Tax Credit progressively over the course of your loan. Consult a tax professional for specific advice about tax implications.
Yes - provided the vehicle's usage meets Australian Tax Office (ATO) requirements. Essentially, the vehicle must be used for business purposes for you to claim depreciation on it. Additionally, you can only claim up to the depreciation limit. See the ATO website for the current depreciation limit.
A Commercial Hire Purchase is often a good option for business owners who account for their GST on a cash or accruals basis, as the GST associated with the loan can potentially be claimed as a tax deduction.
If your business does not account for GST payments on a cash or accruals basis, then a Commercial Hire Purchase may not be the best solution for you. Other loan options you could consider include a Chattel Mortgage, Finance Lease or Novated Lease. Consult a tax professional for specific advice about tax implications.
At Rapid Finance, our team members are experts in business loans, including Commercial Hire Purchase. Your dedicated loan specialist will assess your application, compare a variety of options and seek out a solution that matches your situation.
Your loan specialist will guide you through the entire process – from start to finish. They can help you with everything, from collecting relevant documentation to reviewing your credit history. To start your application, call us today on 1300 467 274.
This will depend on your circumstances and your business's situation. Everything from your business's cash flow to the type of vehicle (or fleet of vehicles) you wish to purchase can affect the loan amount which you and your business are eligible for.
Depending on your situation, you may be eligible for 100% finance. In this case, you would not be required to provide an up-front deposit. For more information on no deposit Commercial Hire Purchase, speak to a Rapid Finance commercial loan specialist today.
The length of time between application and approval will depend on you and your business's circumstances. There are, though, a number of things which you can do to speed up the process. This includes ensuring that your documentation is ready-to-go, complete and up to date.
At Rapid Finance, we're experts in business loans, and in most cases our loan specialists can provide speedy approval. To get a timeline tailored to your situation call us today on 1300 467 274.
Yes. Even if your situation is complicated or if you've been turned down by other lenders, it is still worth applying with Rapid Finance. Our loan specialists are experienced in seeking loan options for those with unique circumstances.
So if you're self-employed or are affected by poor credit, give us a call. Your dedicated loan specialist can assess your application, compare a variety of loans and seek out a solution that matches your and your business's situation.
To get started, submit an online application on our website. One of our team members will be in contact shortly to discuss your Commercial Hire Purchase options. Alternatively, you can give us a call on 1300 467 274
Have more questions about Commercial Hire Purchase? Call the team on 1300 467 274 and we'll be happy to help.
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