Commercial Hire Purchase (CHP) is a finance solution where the client gains ownership of the asset at the end of the term. It allows tax-paying entities to claim depreciation and interest as deductions, making it a cost-effective option for hardware-only acquisitions.

CHP is recorded as an on-balance-sheet transaction, offering transparency in asset management. However, it is not suitable for software license financing, as legal title to software cannot be transferred to the lender under standard hire purchase terms.