Commercial Hire Purchase
Flexible Asset Finance for Australian Businesses.
1800 678 880Mon–Fri 8am–6pm AESTHire the asset now, own it outright at the end. Commercial Hire Purchase gives you the flexibility of hiring with the benefits of ownership.
- Compare 30+ lenders without touching your credit file
- Soft enquiry only — no credit checks until the right option is on the table
- Decisions in as little as 24 hours
$10K+
Finance from
7 Years
Loan terms up to
30+
Lenders on panel
Fast
Approval speed
What is a Commercial Hire Purchase and How Does it Work?
A commercial hire purchase (CHP) is a business asset finance arrangement where a lender purchases an asset on behalf of your business. Your business hires the asset and makes regular payments until the final payment transfers full ownership. It differs from a chattel mortgage (where you own the asset immediately) and a finance lease (where ownership may not transfer). For broader asset acquisition options, explore our equipment finance solutions.
How Commercial Hire Purchase Works
The finance company purchases the asset and hires it to your business. You make fixed repayments over the agreed term and ownership transfers to your business automatically at the end.
Advantages
- Finance company owns the asset during the term
- Your business has full use of the asset from day one
- Ownership transfers at end of term automatically
- Fixed repayments for easy cash flow planning
Tax Treatment of CHP
The interest component of each repayment is tax deductible, you can claim depreciation as if you owned the asset outright, and GST on instalments is claimable progressively.
Advantages
- Interest component of repayments is tax deductible
- Depreciation claimable over the asset's effective life
- GST on instalments claimed progressively over the term
- Speak with your accountant to confirm your position
Who is Commercial Hire Purchase Best For?
CHP suits businesses that want eventual asset ownership without a large upfront capital outlay, widely used in transport, construction, agriculture, manufacturing, and hospitality.
Advantages
- Businesses wanting ownership at end of term
- Transport, construction, and agricultural operators
- Suitable for new and used assets
- Sole traders, partnerships, companies, and trusts
CHP vs Chattel Mortgage
With a chattel mortgage your business owns the asset from settlement. With a CHP, the finance company owns the asset throughout the term and transfers ownership at the end.
Advantages
- CHP: lender owns asset during term, ownership transfers at end
- Chattel mortgage: your business owns asset immediately
- GST treatment differs, seek advice from your accountant
- Both offer fixed repayments and optional balloon payments
How It Works
A simple process from application to asset access, usually completed within 24–48 hours.
Submit Your Enquiry
Tell us about the asset you want and your business details. Our 2-minute form captures everything we need to get started.
We Match You to Lenders
Our team reviews your profile and identifies the most suitable lenders from our panel of 30+ Australian finance providers.
Review Your Options
We present you with tailored CHP options including rate, term, residual, and monthly repayment. You choose what fits best.
Asset Delivered
Once approved and documents signed, the lender settles with the supplier. You receive the asset and begin making your fixed repayments.
Common Questions
What assets can I finance with a commercial hire purchase?
Commercial hire purchase can be used to finance a broad range of business assets including cars, utes, trucks, trailers, forklifts, earthmoving equipment, manufacturing machinery, medical equipment, and restaurant equipment. Both new and used assets are generally eligible, subject to lender approval.
Is a deposit required for a commercial hire purchase?
In most cases, no deposit is required. Many lenders offer 100% finance under a CHP arrangement for qualifying businesses and assets in good condition. A deposit or trade-in may reduce your regular repayments but is not mandatory. Some lenders may request a deposit for older used assets or higher-risk applications.
Can I include a residual value at the end of the term?
Yes. Like a chattel mortgage, you can structure a commercial hire purchase with a residual value (sometimes called a balloon). This reduces your monthly repayments during the term. At the end, you pay the residual to take full ownership, refinance the amount, or trade in the asset. The residual must meet minimum ATO guidelines based on the asset type and term.
How is a commercial hire purchase different from a finance lease?
The key difference is ownership. With a commercial hire purchase, ownership transfers to your business at the end of the term as a matter of course. With a finance lease, the finance company retains ownership throughout and you typically have the option (but not obligation) to purchase the asset at the end for a residual amount. This affects how each is treated on your balance sheet and tax return.
How long does approval take?
For most applications, we can obtain a credit decision from our lender panel within 24–48 business hours of receiving a completed application and supporting documents. Once approved and documents are signed, settlement can often occur within the same business day, getting your business access to the asset quickly.