Rent to Own
Loans For Businesses
Have you asked yourself any of these questions when applying for a loan:
- Why won’t the bank approve my loan?
- Will my new start-up business be successful?
- What if I only have strong business in the pipeline or new contracts?
- My business is growing fast, what do I do without all the financials?
- What if I don’t want to buy new equipment?
An alternative to traditional choices such as Chattel Mortgage and Lease, the Rent to Own solution is flexible and offers a number of options of a rental while still contributing towards paying off the asset so you can one day own it.
The Rent to Own solution is all about having flexibility and options
Rent To Own is designed for small businesses requiring commercial equipment such as heavy earthmoving equipment finance, trailer finance and transportation finance.
Here’s how it works
It starts as an initial 12 month rental contract where you pay a weekly rental amount which helps to pay off the asset.
The real benefit is in the flexible options that you have available from here! There are 4 flexible options:
BUY – As any point in the contract you have the option to payout the contract without penalty. In fact if you payout in the first 12 months then we will rebate 75% of the net rental you have paid back to you! Let’s say you get your equipment and within the first 6 months you are making plenty of money and want to payout the equipment – with the Rent Grow Own solution you can as it’s up to you as to when you own it.
RETURN – If you decide you no longer require the equipment after 12 months, then you can simply hand it back without penalty! If the equipment isn’t the right fit anymore or your work source dries up – with the Rent Grow Own Solution you can simply hand it back and decide where to go from there.
CONTINUE TO RENT – After the first 12 months you can continue on an open contract where you will still be building equity into the asset, but you also keep your options of RETURN and BUY available. If you’re still not completely sure on the equipment then why not keep going on an open basis and leave yourself with all the options still available
OWN OVER A LONGER TERM – After 12 months you have the option to roll into our 3 year rental term called Go Own Plus where we will lower your weekly rent by up to 30% and you can own the equipment at the end for just $1. If you have decided that you want to keep the equipment but do it over a longer term then you can do this all the while still being able to take advantage of the flexibility of a rental contract.
As you can see – it’s all about giving you the flexibility to choose what you do with your equipment along the way instead of just locking you into a 5 years contract upfront with no options!
As an example let’s say you wanted to fund a truck for $45,000 inclusive of GST.
By using the Rent to Own option you could look forward to all the flexible options outlined above with:
- Daily Rental of $83
- Weekly Rental Price $582
- Purchase Price $27,724.13
- Total Year 1 Cost of Ownership $47,383.05
- Net Year One Cost of Ownership $1,558.05
Upfront Cost $3,303.13
Weekly Rent Yrs 2-4 reduces to $407.14
* Assumes applicant is entitled to full input tax credits and income tax deductions within the 12 month period. Start Fresh Finance does not provide legal, tax, or accounting advice. See your tax advisor for details.
Some of the many benefits of a Rent to Own option include:
- The ability to try before you buy
- Short Flexible 12 month contract – don’t get stuck with equipment that no longer suits your needs
- Simple Application Process – we look for ways to approve you
- Rental Payments are 100% tax deducible
- Renting is ‘Off Balance Sheet Funding” which doesn’t affect future borrowing capacity
- Typically no directors guarantees on contracts under $55,000
- No age restrictions on equipment funded
- We can help with private sales
So who can we help with funding?
The key is that we look at finding ways to approve customers not decline them.
We are not a bank and so we can look outside the box and look at a customer’s potential moving forward as opposed to solely how much property they own! With this in mind we can help fund a wide range of different customers:
- New Business start ups
- Owner Operators
- Medium to large businesses
With Start Fresh Finance and GoGetta Equipment Funding, you can have the commercial truck / trailer you need for your business at an affordable daily rate. Make an enquiry today, fill out the form below, or watch our short video below to see the Rent to Own solution in practice.
Have more questions?
Call us now – we are happy to chat about your situation and what you’re looking for.