A loan to purchase goods, which gives legal ownership to the lender and taxation ownership to the purchaser. Upon discharge of the loan, title transfers to the customer.
Until the introduction of the GST system, Hire Purchase was the most popular finance method. Now seldom used, it is no longer offered by some lenders. GST is now levied on the interest charges contained in the loan, payable upon settlement.
Apart from the GST treatment, other terms applicable to Hire Purchase and Chattel Mortgage are almost identical, including terms, rates and loan structures.
For businesses which have a specific requirement for Hire Purchase, australiawide FINANCE has access to the best rates and facilities
