The advantage of a commercial hire purchase agreement is that it allows a business owner to claim the allowable depreciation (plus interest) up front, rather than claiming the actual lease payments. In other respects, a Commercial Hire Purchase agreement (also known as an Asset Purchase agreement) is similar to a lease.

The customer is able to structure a balloon amount (similar to a residual amount for a lease) to make the monthly commitment more manageable. Again, once the balloon payment is made, the customer assumes ownership of the asset.