A Hire Purchase is a contract where the finance company (the owner) allows the customer (the hirer) to possess and use the goods in return for regular payments. When all payments are made the title of the goods passes to the customer.

WHO CAN TAKE OUR HIRE PURCHASE?
Companies and business professionals wishing to finance items such as Motor Vehicles, trucks, industrial plant and equipment which is used predominantly for business purposes.

FEATURES
The finance company can provide 100% Finance (subject to the asset backing and customer quality). A lump sum payment at the end of the contract that settles the debt (balloon payment) can be arranged.

The finance company owns the goods until the final payment is made at which time the customer receives automatic ownership of the goods. The interest component and depreciation of the asset is tax deductible, provided t is used to produce assessable income or the expense is incurred in carrying on the business.

There are no ongoing monthly fees and you can repay the contract before the term ends.

BENEFITS
Repayment schedules can be structured to suit your cash flow. You can obtain the goods with minimal cash outlay. Working capital is not significantly affected.

Instalments are lower during the term of the loan, and then pay a balloon payment at the end of the term.

TERM
Minimum tem of 12 months to maximum of 60 months.

REPAYMENTS
Repayments are monthly, quarterly, semi annually, yearly, seasonally or irregular. Payments can be made by Direct Debit, periodical payment from your nominated bank account, B-Pay or deposit booklet

INTEREST RATE
The Interest Rate is fixed throughout the term of the loan. It is based on market/economic conditions and strengths of the applicant.

FEES AND CHARGES

  • An upfront tax deductible establishment fee of $350.00
  • Customers requiring a payment booklet are charged $115.00
  • Government fees and charges may apply
  • Early termination fee is applicable
  • Early payment loss fee may be applicable if loan is paid out before the term set

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