Commercial Hire Purchase Agreement
Business owners may enter a Commercial Hire Purchase agreement if it is advantageous to them to claim the allowable depreciation, plus interest, on the equipment 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 may also 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.
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Asset Lease Australia specialising in Commercial Finance.