A rental agreement is a pay-for-use asset finance product that is structured between two and five years. At the end of the agreement, businesses generally have three options:

  1. return the equipment;
  2. upgrade the equipment; or
  3. extend the agreement.

A rental product is commonly used to:

  • avoid technology and asset risk;
  • use OpEx rather than CapEx to fund equipment;
  • smooth cash flow by agreeing to set payments over a specified period;
  • incorporate servicing and disposal costs into their agreed cash outlays.

A rental product can also offer operational flexibility by allowing the business to add or upgrade assets during the agreed period.