Accrue benefits with a Hire Purchase
A Team Leasing Commercial Hire Purchase (CHP) is a facility under which you obtain goods by hiring them over the term, with title transferring to you after the last payment. It will suit your company if you use the ‘accrual’ (turnover >$1m p.a.) method of accounting for GST. It may also be suitable if you use a car for business related purposes. Under the ‘accruals’ method, the GST component of the purchase price can be claimed back on your next Business Activity Statement, rather than claiming the GST over the term of the finance contract.
If you want a great deal on a Team Leasing Commercial Hire Purchase for your business, apply now or contact us online or call us on 1300 798 977 and learn how we can help your business grow.
Features of a Team Leasing Commercial Hire Purchase:
Flexibility is a key feature of a Team Leasing Commercial Hire Purchase:
- You can either finance the total purchase price, or use a deposit or trade-in to reduce the loan repayments
- You can even use the GST refund to contribute towards paying off the loan, thereby reducing the amount financed and the interest paid over the term of the loan
- You can have a balloon payment at the end of the term that will reduce the payments during the term
Tax Benefits of a Team Leasing Commercial Hire Purchase
Unlike a chattel mortgage, you do not become owner of the equipment until all payments are made under a CHP arrangement. However, you can still claim a tax deduction for the depreciation as well as the interest paid each financial year. GST is not payable on the repayments as they are calculated using the GST inclusive price.
Other Benefits of a Team Leasing Commercial Hire Purchase:
Other benefits of a Team Leasing Commercial Hire Purchase include:
- Subject to credit approval, we will finance 100% of the purchase price
- The repayments are fixed over the term
- You gain equity in the equipment over the term
- You can choose terms from 1 to 5 years
- No GST is charged on the payment
- You can structure the repayments with or without a balloon payment at the end thus tailoring your repayments to suit your cash flow