COMMERCIAL HIRE PURCHASE ** Conditional Purchase Agreement

• Term 12 - 60 months
• No deposit required To Approved Purchasers (T.A.P.)
• Client can claim depreciation based on cost price ex gst plus interest charges on the loan
• Can be written with or without a final balloon payment
• Ownership and purchase of the asset is implicit in the contract
• GST is normally included in amount financed (ITC available to ABN entities reg’d for GST)
• GST claimed via ITC either over period of loan (Cash Accounting) or upfront (Accrual Accounting)

Benefits versus Cash Payment

• Conserves cash flow spreading expenditure over the term of the finance contract
• Suits borrowers who prefer no final balloon payment

** Where premises are tenanted, term of loan agreement can not exceed Tenant lease period (including options).

With many benefits available to your business Sheldon can provide guidance to lessen the financial impact of fit-out for your business.