A Commercial Hire Purchase (CHP) is a commercial finance product. Under a CHP a finance company purchases an asset on behalf of the customer, and then gives the customer use and possession of the asset ("hires") in return for regular payments.

Once the final payment has been made and any residual (balloon) value paid, the customer takes possession of the asset (purchase). Alternatively, the customer can choose to "trade in" the asset, or re-finance the residual value.

What are the benefits of a Commercial Hire Purchase?

Choice of terms (loan lengths) ranging from 24 to 60 months (two to     five years);

Wide variety of residual value (balloon value) options, generally     ranging from 0% to 60% depending on the type and age of the     asset;

A deposit may optionally be used to reduce the size of the loan;

Tax deductions may be available when the asset is used for     business purposes;

Input Tax Credits may be available where the purchaser is     registered for GST;

A Commercial Hire Purchase is secured finance, which allows     lower interest rates.

A Commercial Hire Purchase through Assetfin has the following extra benefits*

No payout penalties or retained interest, giving you the flexibility to update your asset whenever you want without it costing you extra money; 
No ongoing fees;
Ability to make extra repayments without penalty;
Repayments can be structured, matching payment to you or your business' cash flow; 
Fixed interest rate, so monthly repayments are fixed for the life of the loan.