Micho Finance

Commercial Hire Purchase (CHP) / Asset Purchase

Term is usually up to 60 months but can be increased for larger acquisitions
Payment and terms can be structured to match revenue periods for seasonal businesses
Can be structured with or without a final balloon payment
Only the interest component of the repayment is tax deductible (clients should seek independent tax advice)
Depreciation is claimable by the borrower (clients should seek independent tax advice)
Subject to qualification the GST component of the purchase price may be claimable as an input tax credit next BAS for companies that complete their BAS on an accrual basis

Finance Lease (Leasing)

Equipment Rental Operating Lease

Term is usually up to 60 months
Repayments are completely tax deductible
No necessity to match repayments with depreciation rates
Ownership remains with the financier, an offer to purchase can be made
Often represents a more competitive option for IT equipment (computers,printers, photocopiers) and other assets that are subject to a high rate of obsolescence.