Commercial Hire Purchase (CHP)
CHP is a commonly used equipment financing product for business purposes.
Generally a Commercial Hire Purchase allows the borrower the flexibility to utilise equity or a cash deposit to reduce the amount financed, unlike a finance lease where equity is not permitted.
There is also flexibility when setting the balloon value, i.e. the final instalment.
With a Commercial Hire Purchase the borrower may choose to fully amortise the amount financed or for cash flow purposes set a balloon value hence reducing the rental repayment amounts. Read more