Commercial Hire Purchase (CHP) is one of the commercial marine finance products offered by Jade Boat Loans. CHP is suited to many businesses, of all sizes, to facilitate the purchase of boats, marine vessels and watercraft to be used for business purposes.
This may include large fishing operators, small fishing businesses, marine salvage and repair operators, ferry operators, charter vessels owners, boat and houseboat rental businesses, jet ski hire businesses, water taxi operators, tugboat operators, cruise operators and many other marine business operations.
CHP is suitable for the purchase of many types of boats, for a single vessel acquisition, expanding a fleet with a multi-vessel purchase or refinancing existing boat loans.
Deciding if CHP is the most suitable option for your boat acquisition depends on your business structure and you are advised to consult with your accountant on this matter. The decision will be determined by how your business treats GST, asset depreciation, tax deductions and other factors.
Key Features of Marine CHP
In general terms, CHP involves the lender purchasing the boat on behalf of the borrower and essentially ‘hiring’ the vessel back to the borrower at the monthly loan repayment/hire amount. The lending company holds ownership over the boat for the term of the hire purchase (loan) agreement. The borrower retains use of the boat throughout the loan term and is responsible for the maintenance and operating expenses of the vessel during that time.
- All marine CHP deals are structured on Jade’s low interest rate policy
- The interest rate is fixed for the length of the CHP contract
- Your Jade consultant will structure the monthly payments to suit your business and these are fixed for the term of the contract
- A balloon amount may be included in a CHP contract. This is payable after the final monthly payment is paid.
- Terms from 12 months to 84 months
- Monthly payments are not tax deductible. The interest on the loan is tax deductible.
- GST on the boat purchase price is claimed on the next BAS if you are accural based GST
- GST is not charged on the monthly payment or the balloon or the interest
- GST is charged on any charges and fees and can be claimed at the time of payment
- Depreciation on the value of the vessel is accounted for according to ATO guidelines
- When all monthly payments, interest and the balloon have been finalised, the ownership of the boat is transferred from the lender to the borrower
Whether you are purchasing a new boat from a dealer, manufacturer or importer or a used boat from a dealer, private seller, auction or online, your Jade consultant can arrange a CHP to suit your business.
Speak with a Jade Boat Loans Consultant to discuss a financing solution for your boat purchase. Call 1300 000 003