End-of-Term Ownership
Also known as Hire Purchase or HP, this facility enables business operators to own the equipment at the end of the financing term.
Secure Cost-effective Equipment Hire Purchase - Competitive Rates, Flexible Terms
Commercial Hire Purchase can be an extremely effective credit facility for financing asset acquisitions such as plant, machinery and all types of equipment for many businesses. But to genuinely deliver on ROI targets and work with cash flow, Equipment Hire Purchase must be affordable and cost-effective. As specialists in commercial lending, we work with our customers and our lenders to secure the most competitive equipment CHP interest rates and the most flexible terms to deliver customised solutions.
Consider and compare the features of Equipment HP with the other asset financing products and speak with your accountant to decide if this is the right option for your business. Then speak with one of our brokers for a quote based on your specific requirements.
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Hire Purchase Equipment Finance for All Business Set-ups
CHP Equipment Loans may suit many business set-ups and structures from small sole traders, through SMEs, partnerships, corporations and family trusts. Where a business is new or just setting up, we have access to lenders that offer Low Doc, No Doc and No Financials Equipment HP.
Speak with one of our brokers for the solution we may secure for your business set-up.
- Equipment CHP for Sole Traders, SMEs, Self-employed operators.
- Family Trusts, Large Corporations.
- Expert lenders for No Financials Equipment CHP for start-ups.
What is Equipment Commercial Hire Purchase? Explainer
The name may imply a rental or hire agreement, but Equipment Commercial Hire Purchase or CHP is a credit facility for financing asset purchases.
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CHP and Lease
In technical terms, CHP is similar to Lease in that the lender acquires the asset under finance and the business repays the loan with monthly payments.
Operator Responsibilities
Over the term of the loan, the operator has full use of the asset and is responsible for all expenses such as servicing, maintenance and operating costs.
Depreciation Benefits
CHP has similarities with Chattel Mortgage in that the asset is subject to depreciation in the business accounts.
Competitive Interest Rates
Interest rates on Equipment CHP are typically on par with Chattel Mortgage across the lending market and a balloon component is an option.
Accruals and Cash Accounting
A feature of Hire Purchase Equipment Finance that is unique to this credit facility is that it can suit businesses that implement both the accruals and the cash accounting methods.
Versatile CHP Equipment Loans for Your Business Needs
We advise customers speak with their accountant in deciding if a CHP Equipment Loan is the most suitable option for their business set-up.
- Equipment CHP suited to cash and accruals methods of accounting.
- Versatile credit facility for equipment purchases.
- Balloon option, rates on par with Chattel Mortgage.
Equipment finance guides and resources
Our guides offer useful information and simple explainers to help you understand the financing process with confidence.
Equipment Finance
Heavy Equipment Finance
Specialised Equipment Finance
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Types of Assets Suited to Equipment CHP
A wide range of both new and second-hand business assets may be suited to financing with HP Equipment Finance. Assets may include plant and machinery used in construction, agriculture, production, processing, logistics, timber industry, civil works and other heavy machinery sectors.
Assets may include computers, IT, fixtures and fittings and general business machines and equipment used in many commercial operations including in the medical field, hospitality, retail and a wide range of sectors. For a quote on Equipment HP for your acquisition, speak with one of our brokers.
- CHP Plant and Machinery Finance – wheeled goods, yellow goods, heavy machinery.
- Equipment HP for computers, IT, medical, business machines.
- Retail Equipment CHP Loans.
- Workable financing for wide range of business assets.
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Understand Hire Purchase Equipment Finance Features, Format
HP Equipment Loans have a simple format with the assets being purchased used as collateral for the financing. The term and interest rate are fixed to allow for fixed, equal monthly payments. A balloon component is an optional inclusion. This is a percentage of the loan amount which is set aside and finalised at the conclusion of the term. A balloon may be refinanced.
The complete amount of the GST on the asset purchase is claimed on the next BAS return after purchase. No GST applies to the monthly repayments or the balloon. This applies to set-ups that implement both the accruals and cash methods of accounting, according to the ATO.
Tax deductions on Equipment Hire Purchase are similar to Chattel Mortgage. The interest portion only of the monthly repayments is a tax deduction. The major deduction is realised through depreciation of the asset in line with the ATO schedule at the time of purchase.
For a Hire Purchase Equipment quote on your acquisition, individually sourced to meet your specific requirements, speak with one of our expert brokers.
- Fixed HP Equipment rates, terms, repayments.
- Tax deduction via asset depreciation.
- Tax deductible interest.
- Asset used as collateral for the loan.
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![Owner of a laundromat is contacting Jade Finance to learn more about laundry equipment finance options that will work for his business.]()
Realise Advantages of Securing Equipment Hire Purchase With Jade Finance
Operators can realise significant benefits by using our services to source the best rates and most workable terms on CHP equipment finance. As specialists in asset acquisition financing, we have access to over 80 lenders to ensure we secure the most competitive HP equipment interest rates for our customers. Providing a very personal and individual service, our brokers work to understand the specific requirements and objectives of each customer and source the right lender, best rates, and most suitable financing solution.
We handle the entire finance sourcing, negotiation and structuring, to save operators time in securing the most cost-effective equipment HP outcome. To have your Commercial Hire Purchase Equipment finance individually sourced to meet your objectives, contact us by phone or using our online enquiry form.
- Expert Asset Acquisition Finance Brokers.
- Specialist lenders.
- Best HP Equipment Interest Rates – 80+ Lenders.
- Personal service, individual loan solutions.
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Get Fast CHP Equipment Finance Estimates, Comparisons with Lease, Chattel Mortgage, Rent-to-Own
Comparing the features of HP with other credit facilities, CHP is suited to both methods of accounting whereas Lease and Rent-to-Own suit the accruals method and Chattel Mortgage the cash method. With Lease and Rent-to-Own the asset is not posted to the balance sheet but is posted with CHP and Chattel Mortgage. Lease and Rent-to-Own have deductible repayments while Chattel Mortgage and CHP deliver deductions through asset depreciation.
The interest rate on CHP is the same as Chattel Mortgage, Lease is slightly higher and Rent-to-Own higher again. Equipment Hire Purchase enables businesses using the accruals method of accounting access to the lowest rates on asset acquisition financing.
To quickly compare repayment estimates on Hire Purchase with other credit facilities, simply use our HP Equipment Calculator. This device is suited to all types of credit by entering the relevant interest rate. All elements can be varied – loan amount, term, balloon, to immediately see how different finance terms and balloons change the repayment.
The estimates calculated can be extremely useful for comparing makes and models of plant and machinery and for establishing preferences in preparation to brief one of our brokers. For a quote specific to your business profile and asset purchase, contact us.
- Compare CHP repayment estimates with other loan types.
- Calculate quick estimates, plan preferred terms.
- Compare repayments on different makes and models.
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How to Apply for Equipment CHP – Streamlined Process, Fast Approvals
Applying for Equipment Hire Purchase with Jade Finance is a streamlined process. Simply provide one of our brokers with details of your purchase and the required documentation. Financials required include ABN, annual accounts, tax returns, BAS returns, profit and loss statements, asset and liability schedules, turnover figures and bank statements. Being registered for GST is not essential criteria. New and start-up operators without financials can request quotes for Low Doc and No Doc CHP Equipment Finance. Credit histories will be reviewed by lenders when assessing applications.
With your information, we proceed to source the best quote and process your application for fast approval. Many operators can receive that approval within 24 hours. On acceptance, we finalise the application and liaise with lender and seller for prompt settlement. Apply online or by phone.
- Streamlined Equipment HP application process.
- Fast 24 hour asset finance approvals.
- Online and phone application service.
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THE INTEREST RATE IS CALCULATED ON A SECURED LOAN PREDOMINATELY FOR BUSINESS USE, EFFECTIVE 19/09/2024 AND SUBJECT TO CHANGE. WARNING: THE INTEREST RATE IS TRUE ONLY FOR THE EXAMPLES GIVEN AND MAY NOT INCLUDE ALL FEES AND CHARGES. DIFFERENT TERMS, FEES OR OTHER LOAN AMOUNTS MAY RESULT IN A DIFFERENT INTEREST RATE.
We work harder to secure the best rates.
Equipment Hire Purchase FAQs
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CHP is a form of asset acquisition credit which is used to purchase, not rent or hire, business assets such as plant, machinery and equipment.
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A balloon is optional with HP. It is a percentage of the loan amount requested which is due to be finalised after the final repayment.
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Ownership of goods financed with CHP is transferred to the operator when all payments have been finalised.
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The interest portion only of HP payments is deductible. The tax deduction is realised through depreciation of the asset in line with ATO schedules at the time of purchase.
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Cash accounting accounts for invoices and expenses at the time they are received or paid. Accruals accounting accounts for invoices when issued and expenses when bills are received.
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Commercial credit facilities allow for the assets being financed to be used as collateral for the loan. Whether additional security is required is subject to individual lender guidelines and assessment of the application.
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All types of business assets may be financed with CHP. Where IT and computers are considered assets for a business, they may be approved for commercial credit.
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Start-up operations without full financials and with turnover for less than 12 months may not meet criteria as set by some lenders. They may seek lenders and brokers that offer Low Doc and No Doc credit options.
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A balloon is due for payment in full after the last repayment is made. A balloon may be refinanced, subject to lender approval.
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Interest rates on all commercial credit applications are subject to the lender’s assessment of the application and credit score. This includes an assessment of the goods. Rates can vary for new and used goods.