Understanding Commercial Hire Purchase
For Australian businesses and operators, getting the right finance structure for your assets is one of the most important financial decisions you can make. The right lender, the right term and the right structure can significantly improve your cash flow, reduce your tax burden and support your business growth.
Key takeaway: Specialist brokers who access 40+ lenders consistently find better outcomes for business borrowers than going directly to a single bank — particularly for specific asset types like commercial hire purchase.
What Australian Lenders Look For
When assessing a finance application, lenders consider several factors: the asset being financed including its age, brand and resale value; your business's trading history and income; your personal credit profile; and the loan-to-value ratio being requested. Understanding these factors helps you prepare a stronger application.
The asset itself is a critical factor — popular brands and asset types with strong resale markets attract more lender appetite and often better rates, because the lender is confident in their security. Less common or highly specialised assets may require specialist lenders and occasionally a larger deposit.
Choosing the Right Finance Structure
The main finance structures used for Australian business assets are chattel mortgage, finance lease, commercial hire purchase and equipment loan. Each has different implications for GST, income tax, balance sheet treatment and cash flow. Your accountant and finance broker should both be involved in choosing the right structure — the wrong choice can cost you significantly in unnecessary tax or unfavourable cash flow.
Low Doc and New Business Options
Many business operators assume they need two years of tax returns and full financial statements to access asset finance. In many cases, this is not true. Low doc pathways are available through specialist lenders for most standard asset types, requiring bank statements, ABN details and a declaration of income rather than full financials. New ABN holders can often access finance for assets with strong resale values.
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Get a Free Quote →The Role of a Specialist Finance Broker
A specialist asset finance broker adds value in several ways: they know which of the 40+ lenders are most likely to approve your application, what rate and terms you can realistically expect, and how to structure and present your application for the best outcome. Importantly, a broker submits one application that is assessed by multiple lenders — protecting your credit score from multiple direct applications.
Next Steps
The fastest way to understand your options is to submit a free enquiry. A specialist broker will contact you, understand your situation and the asset you need, and come back with a clear picture of what is available. There is no cost and no obligation — and no impact on your credit score at the enquiry stage.