Under an Equipment Rental or Operating Lease facility the lender purchases the equipment and the business that enters the rental arrangement makes a defined monthly payment for the use of the asset without any ownership being transferred.
At the end of the minimum rental term the business has a range of options such as handing the goods back to the lender, continuing to rent for an extended term or purchasing the asset from the lender at market value.
Options are available for fully maintained products whereby all servicing, warranties and running costs can be bundled together resulting in on ongoing fixed cost which can assist with cashflow budgeting.
Key Benefits of an Equipment Rental / Operating Lease
No ownership obligations
Flexible fully maintained lease options
Fixed costs assist with cash flow management