A commercial hire purchase is a premier option for business who wants the flexibility of regular repayments and the benefits of truck ownership. A hire purchase gives companies and businesses the option to purchase a truck, crane, bus, forklift, prime mover or tanker without having to expose their own capital in the transaction. This means your business won’t have to use its own cash or credit to gain possession and use of a truck, crane or forklift.
A hire purchase means your lender or broker buys a truck on your behalf, which you “hire” from them over the term of the loan. The truck is “hired” by your regular (weekly, fortnightly or monthly) repayments. When you pay the loan off, the truck is yours.
Hire purchases not only keep your cash flowing, but have many other great benefits for business. If you are registered for GST, you can claim the GST paid on your truck, crane or forklift back on your BAS. You can claim other tax credits such as depreciation, interest and the fuel input tax credit.
The friendly financial professionals at Savvy can put together a hire purchase solution to suit your needs. For example, we can set regular repayments that match your business’ cash flow situation with fixed amounts so there are no surprises. You also get a fixed interest rate throughout the life of the loan.