Commercial Hire Purchase
This is a commercial lending product and is not covered by the National Consumer Credit Protection Act.
A Commercial Hire purchase (CHP) is a commercial lending product and is normally used to purchase motor vehicles or plant and equipment.
Under a CHP a finance company purchases a car or plant and equipment on behalf of the customer, and then gives the customer use and possession of the car ("hires") in return for regular payments.
These payments can be made monthly/quarterly or annually or seasonally to suit the hirers cash flow.
The customer can pay a deposit or have a trade – in, and finance the balance if they wish.
Once the final payment has been made and any residual (balloon) value paid, the customer takes possession of the vehicle ("purchase").
This type of finance suits clients who want to have equity in the goods and want to pay a deposit or have a trade – in. As ownership in this case rests with the finance company until the final payment is made, it is not necessary for the finance company to take a fixed charge over the goods, as in the case with a chattel mortgage.
Alternatively, the customer can choose to "trade in" the vehicle, or re-finance the residual value.
Should you wish to talk to us regarding a Commercial Hire Purchase, please complete the Loan Enquiry Form or give us a ring on 1300 559 974.
CommRural Lending Services
52 Wyndham Street
SHEPPARTON VIC 3630
Ph 1300 559 974
