When looking for industrial equipment finance solutions or to invest in long lasting capital goods, consider a Commercial Hire Purchase agreement with Alliance Equipment Finance .
To consider a Commercial Hire Purchase agreement one usually has the goal of owning their industrial equipment. The following is a summary of how a Commercial Hire Purchase agreement from Alliance Equipment Finance works as a means of industrial equipment finance.
Under a Commercial Hire Purchase agreement, the equipment needs to be included on the balance sheet. This means the monthly payments are not tax deductible. However, the depreciation of the equipment, as well as the interest paid over the contract, may be tax deductible.
If required, buyers have the option of electing to include a final lump sum balloon payment. At the end of a Commercial Hire Purchase, the buyer pays the balloon sum, which is similar to a residual, to cover the remaining cost of the equipment.
At the end of a Commercial Hire Purchase term, the buyer does not have the option to hand the equipment back. If a balloon payment is applicable it must be paid, however the buyer may choose to pay the contract out before the expiration of the Commercial Hire Purchase term.