FAQs

All types of boats used in a commercial marine business may be suited to purchasing with Hire Purchase financing.

A wide range of business set-ups may suit CHP finance. These include sole traders, SMEs, partnerships, companies and corporations. CHP suits businesses that use both the cash and the accruals methods of accounting.

Hire Purchase is a form of commercial financing where the business owns the vessel when all payments are finalised.

Jet skis and PWCs used in a commercial business may be financed with CHP. Subject to lender approval.

No deposit financing is subject to lender approval of the application. Lenders assess the financials of the business and the age and condition of the vessel when approving loan limits.

A balloon is a percentage of the total loan amount which is due for payment in one full lump sum after the final monthly repayment is made. Balloons may be refinanced.

No. Only the interest portion of CHP repayments is deductible. CHP provides businesses with a tax deduction when the boat is depreciated in the annual accounts.

Asset depreciation schedules are set by the ATO. Assets are depreciated as a percentage of the value over a time period. Operators should consult with an accountant for the exact amount for their specific purchase.

To apply for CHP boat finance operators will need an ABN, ID and provide financial documentation on their business operations.

Lenders assess vessels as suitable security for finance and the strength of the applicant’s finances. Many applications can be approved with the vessel as the sole source of collateral for the loan. If additional collateral is required, it is subject to individual lender guidelines and decisions.