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Avoid upfront costs when buying equipment with a Rental Agreement

September 18, 2019

Get tomorrow’s technology for your business today with a Rental Agreement

Acquiring equipment through a Rental Agreement may not have been something you had thought of before, but it might be the solution that equips your business with the latest available technology.

How does it work?

The Rental provider buys the needed equipment on your behalf, then rents it back to you over an agreed period of time, at fixed repayment rates. At the end of the lease period you are provided with the option to simply return it and pay nothing further, upgrade the equipment to the latest available technology, continue to rent it, or to make an offer to purchase it.

The benefits of renting

Here are some benefits to renting business equipment, such as computers, printers, photocopiers or other IT infrastructure components:

  • You avoid the upfront costs of buying new equipment and keep working capital invested within your business instead.
  • Renting the equipment is often cheaper than purchasing it outright when you are looking to retain equipment only for the period in which it is protected under the manufacturer’s warranty, such as IT equipment over 3 years.
  • Potential tax benefits for your business, where repayments could be treated as an operational expense and may be tax deductible.
  • It provides you with the option to upgrade equipment to the latest available technology during the lease period, making your business more productive and energy efficient.

Get the details right

As everyone’s circumstances are different, it’s vital that you understand the terms of the rental agreement you have entered into and consider flexibility. This can allow for any changes based on the changing needs and objectives of your business.

Talk to your finance broker today to see how your business could benefit from a Rental Agreement when investing in new equipment.