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Equipment Rent to Own | Business Loans

19 Dec Today's
best rate
Finance Equipment From
{{Advertised Rate Only}} %
*The Interest Rate is calculated on a Secured Loan for business use, effective 03/02/2023 and subject to change. WARNING: The interest rate is true only 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.

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.

Loan Amount
Loan Term
New Equipment Loan
2.79% Starts At
Monthly repayment
Used Older Secured Equipment Loan
4.50% Starts At
Monthly repayment
Business Loans - Unsecured
7.99% Starts At
Monthly repayment
Business Loans - Secured
2.95% Starts At
Monthly repayment
Overdraft - Non Bank
9.95% Starts At
Monthly repayment
Chattel Mortgage
2.79% Starts At
Monthly repayment
Operating Leases
4.60% Starts At
Monthly repayment
Commercial Hire Purchase
2.79% Starts At
Monthly repayment
Rent To Own
9.95% Starts At
Monthly repayment
Loan Product Interest Rate
Starts at:
Monthly Repayment
New Equipment Loan 2.79%
Used Older Secured Equipment Loan 4.50%
Business Loans - Unsecured 7.99%
Business Loans - Secured 2.95%
Overdraft - Non Bank 9.95%
Chattel Mortgage 2.79%
Operating Leases 4.60%
Commercial Hire Purchase 2.79%
Rent To Own 9.95%
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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.

What Is Equipment Rent to Own?

Rent to Own is a form of business 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.

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 business loan brokers to negotiate your deal

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 business 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 business.
  • The borrowing business 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.

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 business 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.

Sourcing Workable Rent to Own Equipment Finance

We has 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 business 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.

Rent To Own Equipment Calculator

Take action with that equipment acquisition by using our handy online calculator to compare makes and models and plan your lending. It’s easy and free to use with no obligation. Just enter the data around your purchase and instantly see the repayment estimates.

Disclaimer: Using this Rent-to-Own calculator is not a lending application form in any way. Use of this device and the results calculate do not represent or indicate approval for lending or any offer of loans. Charges and fees as applied by individual lenders may not be included in total in the computations of these devices. Any offer made to an individual by a lender may have a different interest rate and/or different repayments from those in the calculator. To be used as a guide only.

Finance Calculator Disclaimer

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.

Is this like hiring equipment?    

No. When you hire or rent a piece of equipment, possibly to undertake a specific task, it is typically for a short-term. Often on a daily or weekly basis. With rental/hire it is understood that the equipment is fully owned by the company that you are hiring it from. There is no inference that the rental or hire payment you make is in any way going towards purchasing that equipment. Rent-to-Own, as the name implies, is a lending product where the borrower is making payments with the intention of purchasing/owning that equipment. It is entirely different from daily hire or rental. The end objective is to own that equipment under lending.

Are the repayments and terms fixed for rent to own equipment?   

As a form commercial lending, the elements of lending contracts are typically arranged at fixed values. The loan term is fixed and can be up to 6 years, depending on the equipment and lender guidelines. The interest rate is also typically fixed. So the fixed interest rate and the fixed loan term then determine the fixed repayments. These are usually scheduled for payment on a monthly basis. A buyback amount or arrangement can be included in a contract. This is for payment after all the fixed repayments are completed. It may be a fixed amount which the borrower pays to the lender to take ownership or the borrower can negotiate a buyback with the lender to take full ownership at the conclusion of the lending term.

Is Rent to Own a tax deductible form finance?   

All forms of commercial lending include some element of tax deductibility. These elements vary across the different forms of commercial lending. The monthly repayments are considered as an accepted operational expense and are tax deductible. GST is applied to the payments, but not the interest portion of the payments, and can be claimed by commercial operations that are registered for GST. With this form of lending, the equipment is listed as an asset/liability on the balance sheet of the lender. Therefore, the borrower does not depreciate the asset to accrue a tax benefit. As such, this form of finance is not suited to accelerated asset depreciation measures such as Instant Asset Write-Off and temporary full expensing.

Do I get full use of the equipment?   

Yes. The borrower has full use of the equipment over the lending term once the loan and purchase is fully settled. The lender retains ownership but the borrower has full use of the equipment. The final stages of the lending process involve the lender paying the seller for the purchase of the equipment on behalf of the borrower. This is known as settlement. If working with a lending broker, they will usually make all those arrangements. Once settlement is finalised, the borrower takes possession of the equipment from the seller and has full use of the equipment. Having full use also involves covering the ongoing running, maintenance and operational costs and expenses for the equipment. For trucks and vehicles that require registration that would include the costs of registration, plus insurance, maintenance and repairs.

How do I know if Rent to Own is the best finance option for my business?    

The choice of lending product is an extremely important decision for commercial owners. The range of products available have varying benefits and suitability depending aspects of the individual commercial and the equipment being acquired. It is strongly recommended that commercial owners refer to their lending advisor or accountant in making that decision. Consideration needs to be given to the accounting method implemented to prepare the commercial accounts; both short and long term financial objectives, GST and income tax issues and approach to the balance sheet amongst other issues. Aspects of the equipment such as the estimated working life are also considerations.
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