'Rent to Own' Equipment Funding

What is a Rent to Own facility?

Rent to Own (also referred to as Rent to Buy) suits businesses with the need for additional equipment to fulfil short-term contractual requirements, as well as business-owners who may not meet traditional lending criteria. The lender buys the equipment on behalf of the customer and rents it back to them over an agreed term (from 12 to 60 months) at a fixed price. At the end of the term, the business has the option to hand the equipment back to the lender, purchase it outright, or renegotiate the agreement at a lower rate, although at this point, the business may qualify for more mainstream funding options.

Rent to Own, is a popular alternative for businesses that may not qualify for traditional equipment finance, such as start-ups, credit impaired or businesses with little or no trading history.

What are the benefits of a Rent to Own facility?

✔  Allows businesses to easily access new or used equipment they would otherwise not be able to purchase
✔  Access equipment required to meet short-term work commitments without being locked into lengthy finance contracts
✔  Avoid having to keep non-essential equipment on hand after completion of large projects
✔  The option to return, renegotiate, or re-finance/purchase the equipment at the end of the term
✔  Depending on the length of the contract, businesses may be able to claim 100% of rental costs as an expense

How does it work?

✔ You choose your vehicle or equipment, including any unique specifications for the price you can afford.
✔ The lender calculates a rental offer based on an agreed value for the asset. In most cases the renter will pay the difference to the purchase price as their first rental payment, or provide additional, unencumbered assets as security to cover the cost difference.
✔ The lender sources the appropriate vehicle and/or equipment within your price range via one of their accredited dealers.
✔ Once the contract is established, you make an initial loan commencement payment followed by weekly payments for the remainder of your contract term.
✔ During the rental term, all operating costs are payable by the renter, including registration, insurance, servicing and maintenance

Who is it suitable for?

✔ Short-term borrowers with guaranteed exit strategy
✔ New businesses with 1 day ABN & GST
✔ Bad / slow credit applicants
✔ Ex bankrupts
✔ Non property-owners
✔ Non-residents or applicants on a working visa (guarantor required)

triple 8 equipment finance
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