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Equipment Rent to Own | Business Finance Australia

Rent to Own is a form of commercial loan which, as the name implies, allows a commercial enterprise to rent the equipment in order to achieve ownership. Some banks and lenders refer to this type of loan as an Operating Lease.

Business Finance Equipment Rent to Own | Business Finance Australia
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Comparison
Compare Interest Rates on Rent to Own With Other Loan Types

Deciding which loan type is the most appropriate for your commercial operation and the equipment you are purchasing should involve a discussion with your accountant. But to assist in your initial lending planning, you can use our interest rate comparison calculator to generate repayment estimates on your equipment purchase for different lending products. The table shows the interest rates for a range of finance facilities in our portfolio.

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Disclaimer: The interest rate comparison chart is provided to facilitate comparisons between Rent-to-Own repayment estimates and repayments on other lending products. It is provided to be used as a reference guide and resource tool only. This is not an application for lending. Charges and fees from lenders and brokers may not all be included in the formulations. Any repayment estimate calculated on this device may be different from any offer made to the user. Results generated on this device are not an offer of other lending and are not any indication of application approval.

17 May

Today's best rate

Finance Equipment From

4.99 % Fixed

* The interest rate is calculated on a secured loan for commercial use, effective 17/05/2024 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

17 May

Today's best rate

Finance Equipment From

4.99 % Fixed

* The interest rate is calculated on a secured loan for commercial use, effective 17/05/2024 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

What Does Rent-to-Own Equipment Mean?

What Is
What Is Equipment Rent to Own?

It is quite widely utilised so many banks and lenders offer the Rent to Own option to finance equipment purchases. We can cut the time it takes you to source a cost-effective Rent to Own Equipment deal. We’ve brought together many banks and lenders that offer this type of loan in our loan hub. To access these lenders directly, just make contact with us with your commercial requirements and we’ll send you the details of lenders that match your criteria.

Certain industries and certain types of equipment are quite specialist in nature. Dealing with lenders that fully understand your sector and have experience in providing lending, for the type of equipment you are acquiring, may result in a much better loan offer.

  • All major bank contacts
  • Direct access to specialist lenders
  • Specialist lenders in your industry
  • Contact with commercial loan brokers to negotiate your deal

Features
Rent to Own Features

  • Rent to Own loans are an off balance sheet finance facility. The asset is entered on the balance sheet of the lender so it is ‘off’ the balance sheet.
  • This type of loan is often used to improve balance sheets as the equipment does not appear as an asset/liability.
  • The lender essentially purchases the equipment and the borrowing commercial rents the equipment from the lender for a specific time period at a set monthly rental payment.
  • From the settlement of the purchase and loan agreement, the borrower takes possession of the equipment for use in their venture.
  • The borrowing venture is responsible for the ongoing expenses associated with the equipment during the course of the rental-loan term.
  • The rental agreement is usually established on a fixed interest rate.
  • The rental term is fixed. The length of the term may be up to 6 years but is usually determined by the lender based on the condition or working life of the equipment.
  • A buyback price may be incorporated into the rental agreement. Alternatively the borrower may negotiate an appropriate price to buy the equipment from the lender at the end of the rental-loan term.
  • The monthly rental fee is fixed and treated as an operating cost and as such, tax deductible.
  • GST is charged on the monthly rental payments and can be claimed by the borrower if registered for GST.
Appropriate Gear Available for Rent-to-Own

Wide Range
Suitable Equipment For Rent To Own

A wide range of equipment is suited to Rent to Own. The determining factor as to whether or not this is the most suitable loan facility for your venture will be aspects of your commercial set-up. Referring to your accountant for advice in this regard is highly recommended.

Some lenders will have limitations on what equipment loan they will approve, predominantly in terms of age and condition.

If you are seeking a loan on used equipment, use our services to compare the market with many lenders and banks that will be best suited to your requirements.

Connect with us
Sourcing Workable Rent to Own Equipment Finance

We have connections with a number of lenders that offer this type of loan. No need for you to spend your valuable time doing the rounds of banks and lenders – just contact us. Let us know your requirements with details of the equipment and your venture, and we’ll provide you with the details of the lenders that fit your criteria.

Connect with us for lenders to discuss a great Rent to Own equipment financing deal.

Acquiring Feasible Rent-to-Own Equipment Financing Option

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FAQs
Equipment Rent-to-Own FAQs

A form of lending which can be used for the purchase of a wide range of equipment by many types of commercial entities. Differentiating this from other forms of loans available can be challenging. So we have prepared this additional information to add to what has already been presented in our web pages. For a detailed quote, simply contact us.

The role of a financial consultant is primarily to advise individuals and enterprises on issues around their finances. They may advise, guide and manage matters in regard to superannuation, investments, accounting and others. The role of a finance broker is to source and structure loans on behalf of clients based on the brief provided.

No. The role of the broker is to source the cheapest and most appropriate funding offer from across a selection of many lenders based on a briefing and directions from the client. Directions which would include which particular loan type was required. The task is to source the most appropriate offer that meets the client’s requirements as indicated. The choice of the most appropriate product – Chattel Mortgage, Leasing, Rent to Own, CHP, Secured Loan or other, is dependent upon accounting issues and objectives of the enterprise. The broker would encourage clients to discuss choice of finance product with an accountant.

No. The broker will source offers from across a selection of banks and lenders and present the offer to the customer. The customer remains in control of all decisions when engaging with these services. The customer may accept or reject any offer made by the broker.

It is usually not necessary to select a broker that is located in the same region as the client. Many operate on a nationwide basis and provide services to all areas from a head office location. Discussions are handled by phone, email and other online communications. Documents, including quotes and offers may be exchanged via email and other electronic document exchange and transfer systems.

Yes, depending on the scope of services offered by a particular brokerage firm. Brokers can provide services to both individuals and all types of enterprises. These include sole traders, owner-operators, partnerships, corporations and micro enterprises.

The range of services offered by brokers may vary. Those services may include sourcing funding options for customers with bad credit. When requiring bad credit funding, customers may consider source a service that does offer or specialise in this area.

The range of funding products offered by a business-focussed service may specialise in a specific area such as motor vehicle loans or asset funding or they may offer the full range of options. This full range includes, but may not be limited to, Chattel Mortgage, Leasing, CHP, Rent to Own, Overdrafts, refinancing Secured and Unsecured Funding with options for Low Doc and No Doc and bad credit. Some may also offer specialised products such as Insurance Premium Funding and Debtor Invoice Funding.

Not necessarily. Some commercial funding brokers may also offer home loan options. Home loan consultants typically specialise in sourcing funding in the housing sector and are accredited with banks and lenders that offer that type of funding. Those operating in the commercial sector will have accreditations with lenders that specialise in that area of funding.

Yes. The motor vehicle lending sector is one of the largest and most competitive in Australia. Broker-style lending services assist source the most appropriate offers from across the vast lender selection. Products offered would include Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent to Own.

Services offered by brokers can vary. Clients can review the range of services offered by different firms to ensure their needs are included. Those needs may include equipment and machinery funding, loans for motor vehicles and trucks, refinancing, complex restructuring funding, general support and others. Clients may also consider the geographical locations covered to ensure they will receive the appropriate level of service. Ensure the company is large enough to handle the needs quickly. Ensuring the company has specific experience in the industry or sector of operation may also be a significant benefit.

Brokers have accreditation with banks and lenders. That means they have been approved by that lender to source lending from them on behalf of their clients. The number and range of accreditations will vary. Those with a greater selection including specialised lenders, may provide greater choice and better prospects to source cheaper offers.

Using a broker-style service can save customers time, not add more time to sourcing funding. They have the resources and expertise to quickly cover a large number of lenders to identify the one that is currently offering the most appropriate rate and option to suit individual needs. Sourcing and comparing quotes and offers from multiple lenders can take individuals a significant amount of time. Brokers can carry out this process much faster and with greater expertise. They may also have access to specialist lenders that work only at an industry level and not directly with customers.

Yes. Most brokers will provide refinancing as part of their service offering. Refinancing involves replacing the existing funding arrangement with a new loan. Refinancing may be provided for equipment and machinery funding, heavy vehicles, motor vehicles and for other commercial funding needs and purposes.

Yes. The role of brokers is to handle all the communications and negotiations with lenders on behalf of their client. This includes sourcing quotes and offers that best meet the client’s requirements. When presenting the offer, they should explain the details in terminology that is understood by the client. The client then makes an informed decision around accepting any offer and proceeding or not.