A Commercial Hire Purchase Loan is a finance product used by business owners where they get to hire business equipment, cars, trucks from a lender for a fixed monthly repayment over an agreed period of time. It’s also known as a Corporate Hire Purchase (CHP), Hire Purchase (HP) or an offer to hire. As much as the lender is the one who fully owns the assets at the moment, you still have access to use the car or equipment  for your own benefit. 

The Lender may agree to purchase the car or machinery on your behalf then hires it back to you over a set period of time. Once you complete making the repayments in full as per the contract including any interest fees, that’s when you get to own the asset permanently. This loan works best for business wonders, sole traders, partnerships and companies because they don’t have to tire down funds into purchasing a car or machinery as they can easily make manageable monthly installments. Some of the equipment this loan can finance include manufacturing machinery, cars, trucks and commercial vehicles, computer and IT systems, cranes and construction equipment.

• You have the choice of owning the car later, refinancing the residual amount and continuing a new lease on the vehicle or trading it in for a new vehicle.
• You may get flexible contract terms ranging from one to five years.
• Monthly payments are generaly fixed giving you a chance to budget for it effectively
• If you use the car for business, there can be tax deductions that may be available to you depending on the depreciation limit set though you need to confirm with your accountant.
• A residual can be applied to a lease, lowering monthly payments
• You can make lease payments in advance

• This finance product is not necessarily cheap when compared to other standard personal loans.
• Vehicle ownership belongs to the lender or finance company until you fully pay.
• The vehicle’s operating cost, insurance and maintenance is all your responsibility.

At Braid Finance, we have partnered with reliable financial and insurance partners and you can get access to all of them in one place hence giving you the chance to compare the best choice for you. Applying with us is also free, fast and easy. All you need to do is choose a vehicle or machinery, complete the online application form and give us your personal financial details. Note that for you to qualify for this loan, the acquired vehicle or machinery must primarily or at least 50% of the time be used for business purposes.