Business Equipment Hire Purchase

What is Hire Purchase/ Asset Purchase?

This form of finance is similar to a finance lease in many ways. Like a lease, the interest rate, payments, residual value (or balloon payment) and term are fixed.

Benefit to you in a Hire Purchase/ Asset Purchase

- Increased tax benefit in the early stages of the loan term
- You hold title to the item.
- Depreciation and interest can be claimed
- Pay less in interest as a general rule
- Minimal early payout penalties
- Conserves working capital and cash reserves.

Ideal Items To Hire Purchase/ Asset Purchase

Any item that is used predominately for business purposes that you are wishing to own and maybe keep for more than 3 years.

Your Objectives in Hire Purchase/ Asset Purchase Should be

- You prefer to own the item
- You are trying to build equity into all items that I finance
- You don't want to pay cash.
- You would think that you will keep the item financed for longer than 3 years