Commercial Hire Purchase

COMMERCIAL HIRE PURCHASE

Commercial Hire Purchase provides the user with depreciation and interest as
deductions. It is an on balance sheet transaction; Hire Purchase is inefficient for
upgrades and enhancements. At the end of the term the client has title to the goods.

As the borrower cannot pass on title of the Software licences to the lender, a standard hire purchase
cannot be used to legally finance a software licence.

(Conditional – ideal for tax paying entities who are not constrained by capital budgets
for hardware only transactions).