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Equipment Rental


Equipment Rental is a simple rental agreement whereby the financier buys the asset on behalf of the customer and rents it back to the customer over a fixed rental term.

How does an Equipment Rental work?

The financier purchases the asset on behalf of, and as instructed by, the customer, who then rents the asset back to the customer over a fixed rental term. Unlike a leasing product, an Equipment Rental allows the customer to simply hand back the asset to the financier at the end of the fixed rental term. There is no obligation for the customer to retain or acquire the asset at the end of the term, however the agreement can be structured for the customer to acquire the asset, or continue to rent it, at the end of the initial rental term.

Benefits to Business

  • Fixed monthly rental payments and agreement term.
  • Rental payments tailored to match your business cash flow.
  • Asset is ‘off balance sheet’, meaning the asset is not considered to be a business asset, nor is the debt considered to be a liability.
  • A residual value may be used in the agreement in some cases, lowering monthly rental instalments.


Tax

  • Can claim 100% of rental payments (if used 100% for business use) as a tax deduction.


For more information on Equipment Rental please contact us.