Hire purchase is a contract where a financier buys energy efficiency equipment for a business to hire and use. At the end of the lease, the business has the option to buy the equipment.
Stay in control of your finances
- Get finance of more than $7500.
- No upfront capital or security.
- Structure repayments to suite cashflow.
- Simple 1–5-year contract with a 1–3-month agreement period.
Potential tax benefits
- You may claim tax on depreciation.
- Off the balance sheet.
How it work
- Find a financier who offers hire-purchase financing. Most major banks offer them, so your bank is a good place to start.
- The financier purchases the equipment for you.
- You make monthly repayments to the financier.
- At the end of the agreement, you own the equipment.
You own the equipment risk, but for an extra cost, the financier may take on the risk for you.
It’s advised to always seek advice from your accountant.
Most major financiers provide a discount on finance for energy efficiency and renewable energy equipment upgrades.
For a list of simple tips to save energy in your business, visit the Victorian Energy Saver website.