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Commercial Hire Purchase

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What is a Commercial Hire Purchase Loan?

Commercial Hire Purchase Loans allows you buy equipment or vehicles you can use now and spread the cost over time rather than paying upfront.

Hire Purchase is an agreement where a financial provider will buy a vehicle or equipment on your behalf from the seller. You then buy it from them in instalments (including interest) over an agreed period. You have the use of the asset while you’re paying off the loan. On the final payment, ownership gets transferred to your business. 

This option is suitable for assets with medium value and lifespan, such as power tools, commercial kitchen equipment, or vehicles. It’s great if you want to purchase vehicles or equipment but don’t have the money to pay for it upfront.

The Benefits of a Commercial Hire Purchase

Hire Purchase lets you buy equipment or vehicles you can use now and spread the cost over time rather than paying upfront. Benefit from the assurance of fixed-rate repayments and potential tax deductions.

  • Preserve your working capital
  • Use now and pay later
  • No collateral is required as the financed asset provides its security 
  • Easy to manage flexible payment installment terms
  • Fixed interest rate for the entire agreement
  • The asset becomes yours at the end of the loan period
  • Claim tax deductions for depreciation of equipment
  • Claim the GST included in the equipment’s price
  • Claim interest and related fees as tax deductions.
  • Flexible terms from 1 to 5 years
  • Lower interest rates due to the vehicles collateral usage against the loan

What Businesses use Commercial Hire Purchase Loans?

  • Hospitality
  • Restaurants & cafes
  • Catering 
  • Construction
  • Mining
  • Medical 
  • Tradies
  • Manufacturing

How does Commercial Hire Purchase work?

A Commercial Hire Purchase arrangement enables your business to hire an asset from the lender for a fixed monthly repayment over a set period (usually 1 to 5 years). 

The lender agrees to purchase the vehicle or equipment on your behalf and then hires it back to you. You’ll have full use of the asset for the contract term but won’t be the owner. 

At the end of the term, when the total price of the vehicle (minus any residual) and the interest charges are repaid in full, your business takes ownership of the asset.

Step-by-step process of a Commercial Hire Purchase Loan

1. Choose an asset and make an application

Identify the asset your business requires and apply for Hire Purchase, supplying all relevant business income, profit and loss, equipment maker and model, supplier information, price quotation, and their payment terms.

2. Background check and negotiate terms

The provider conducts background checks, processes applications, and agrees on terms of repayments in consultation with you.

3. Take delivery of your asset

Sign your documents, and when your vehicle or equipment is ready to be collected, the finance provider will pay the supplier while you take delivery.

4. Pay off asset and take ownership

Your company makes repayments to the lender as agreed and officially owns the asset at the end of the term.

How to apply for a Commercial Hire Purchase Loan

Discuss your asset requirements with us.

Contact principal broker Brin Hayden to discuss your needs, and we’ll begin the process. We’ll source a suitable finance provider and ensure all your necessary information is in order to secure the equipment or vehicle finance you need.

Organise and lodge application

You provide the requested completed documents and we will organise and lodge the application on your behalf. In addition to business documents, you will need to satisfy the following:

  • Have a valid Australian Business Number (ABN)
  • Supply account number and BSB of your main business account
  • Have been in business for at least 12 months
  • Asset to be used for business purposes at least 51% of the time
  • Meet the lender’s minimum credit requirements

Gain approval and begin Hire Purchase

With our guidance, we can source a provider and assemble your application in as little as five business days. The speed of approval will depend on the asset you wish to finance and its value. Because the lender is purchasing the asset on your behalf, the process will generally take longer than other types of business loans.

Why Choose Cabbage Capital as Your Finance Broker?

Our founder and principal broker, Brin Hayden, brings over 20 years of experience in the commercial sector, focusing on financial solutions for small to medium enterprises to provide a real impact.

“I’ll take on board what you’re trying to achieve, then find the right provider and negotiate terms to secure the assets and equipment you need. Unlike banks or individual finance providers, I’m not limited to just one or two lenders. We source finance from a network of 30+ competitive lenders vying for your business. So, you get the best Hire Purchase deal for your situation.

Hire Purchase is a cost-effective way to get the kit you need now without paying upfront. Plus, you get the reassurance of fixed interest rates, flexible terms, and tax breaks to help your cash flow. If you’re thinking of an upgrade, expansion or getting the tools to take your business to the next level.”

Brin Hayden

Founder and principal broker

I’ll take on board what you’re trying to achieve, then find the right provider and negotiate terms to secure the assets and equipment you need.”

Let’s get started

If you’d like to book a meeting to discuss your needs or start a finance application, leave your details, and we’ll get back to you within 24 hours.
Alternatively, call Brin at 0418 574 655. 

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