| The hire purchase product provides the client with a funding option using only the assets they are buying as security. When the final payment is made the security is released.
Terms range from 6 months to 5 years, with deposit requirements depending on the strength of the borrower (no set criterion applies). Seasonal and balloon payment options can be arranged, and 99 times out of 100 we can carry the GST content of the purchase price. This is added to your third payment to coincide with your GST payment cycles.
Hire Purchase, although one of the oldest forms of financing, is still the most preferred financing option that the majority of our deals are based on - 70% of our business is done on a hire purchase basis.
All our pricing is on a fixed rate basis.
Secured loan (also known as chattel financing)
The secured loan product provides the client with a funding option, using existing plant & equipment as security, in lieu of a deposit.
Secured loan financing requires a little more paperwork, but in effect the interest rates are the same as is the way the liability shows on your financial accounts.
Again all pricing is calculated on a fixed rate basis.
General information concerning hire purchase and secured loan funding options;
- Financial information is required on loan or lease applications. This information is confidential between finance division staff, client and the finance underwriters.
- With hire purchase and secured loan options, they are subject to normal tax treatment of an asset purchase; you may claim depreciation and interest costs for tax purchases.
- Penalty interest may apply to early repayment of hire purchase and secured loans.
- Interest rates quoted are subject to change.
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