Commercial Hire Purchase

Commercial Hire Purchase

Under a Commercial Hire Purchase (CHP), the hirer contracts to pay hire charges for a fixed period at the end of which the legal title to the property passes to the hirer. Until all the hire charges have been paid, legal title remains with the owner (Financier). On all BOQ Finance CHP facilities the financier registers its interest with Personal Property Securities Register and this will only be removed once the hirer has met all required obligations under the CHP.

Taxation benefits

Under a Commercial Hire Purchase arrangement the Hirer may be entitled to claim depreciation on business use equipment. However you should seek independent taxation advice, as this may not be applicable to your situation.

Hire payment options

BOQ Equipment Finance Limited provides various types of hire purchase repayment options: •Equal Rentals is the standard form of calculation and provides for equal monthly rentals in advance or arrears •Seasonal Rentals cover many varied structures which can be designed so that rentals are payable at any nominated interval during the term to suit a client’s particular needs or, more importantly, its cash flow. •Balloon/Bulk Payments can be included at the end of your contract. You may then choose to re-hire the goods or pay this amount and take full possession and ownership of the goods.

 

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