Equipment Finance Options: Equipment Rental
Equipment Rental is an agreement between a financier and a customer whereby the financier buys the equipment on behalf of the customer and rents it back to them over a fixed period.
How does Equipment Rental work?
When using an Equipment Rental, the financier buys the equipment on behalf of the customer and rents it to them over a fixed period.
The customer simply makes fixed monthly rent payments, and at the end of the contract hands back the equipment to the financier.
Benefits of Equipment Rental
- Flexible contract terms
- Fixed interest rates
- Fixed monthly lease rentals
- Costs are known in advance
- A residual can be applied in some cases, lowering monthly payments
- Your equipment does not sit "on your books" as an asset/liability
- Rental payments can be claimed as a tax deduction.
- Rented equipment is not considered to be a business asset (or the debt a business liability)
Tax implications of Equipment Rental
With Equipment Rental the customer can claim the rental payments as a tax deduction.
If you are considering Equipment Rental, you may also want to take a look at Asset Lease, Commercial Hire Purchase and Chattel Mortgage as other possible finance options.
Want to know more?
Call us on (03) 9888 9292 and we will be happy to discuss your options with you.