Hire purchase finance for business

Hire purchase is a contract where a financier buys renewable or energy-efficient equipment for a business to hire and use. At the end of the lease, the business has the option to buy the equipment.

Suitable for businesses that:

  • want to invest in equipment with medium value or lifespan.

Details

Project size: More than $7500

You don’t own the equipment until the final repayment has been made

You’re responsible for maintenance

Contract length

  • 1–5-year contract
  • 1–3-month agreement period

Claim tax on:

  • Hire payments
  • Equipment depreciation

One the balance sheet

Additional benefits

  • You can upgrade the equipment once the agreement is complete
  • No upfront capital or security

How to apply: Most major banks and financiers offer capital lease financing. Contact your bank to find out more.

Compare finance options >

How it works

  1. Find a financier who offers hire-purchase financing. Your bank is a good place to start.
  2. The financier purchases the equipment for you.
  3. You make monthly repayments to the financier.
  4. At the end of the agreement, you own the equipment.

We advise you to always seek advice from your accountant and legal representative when entering financial agreements.

Get a discount for your energy saving project

The Victorian Government offers businesses a discount on energy saving products that are installed by accredited Victorian Energy Upgrade providers. Check which energy saving products are registered for a discount.

The Clean Energy Finance Corporation is currently facilitating discounted financing for energy efficiency and renewable energy equipment upgrades through some of the major banks and financiers.

We advise you to always seek advice from your accountant and legal representative when entering financial agreements.

Visit the Victorian Energy Saver for a list of simple tips to save energy in your business.

Want to know more? Get in touch with:

Sustainability Victoria's finance team who can help you through this process.

03 8626 8700

sustainablefinance@sustainability.vic.gov.au

Correct as at November 2019

Disclaimer: The information provided in this document is general advice only. It does not take into account your particular needs or objectives and does not constitute legal or accounting advice. Accordingly, any comments or statements made are not a recommendation that a particular course of action is suitable for you and you need to seek your own legal, tax and accounting advice in relation to your specific circumstances.