Rent To Own

Rent To Own

What is Rent To Own?

This product offers an alternative to traditional options such as equipment leases and gets you the equipment you want today.
Typically used when standard financiers can’t or won’t approve your finance due to lack of trading figures or even a previous credit issue.
Small business or even start up businesses can sometimes have trouble accessing the finance they need and this provides them with a quick affordable option. Normally only 12 months it can also be useful when you only need equipment for a short period of time.. General rule of thumb is it should be income producing equipment. e.g. A truck for a new haulage company or a new ute for a plumber.

Tax and GST:

Simply classed as a rental, the repayments are 100% tax deductable for the attributed business use. There is no GST on the purchase price as you don’t own the asset but you can claim GST on the rentals. The asset can be handed back after 12 months or purchased for the agreed residual value

Cost of Finance:

The true cost is affordability and achieving what you need. The rentals are typically more expensive than traditional finance but when you weigh up against the fact you are not able to obtain any other finance it can be short term pain for long term gain. With the applicable tax deductions the difference may not be as much as you think and its a great way for new businesses to establish a repayment history making it easier to obtain finance at the end of the rental period.

The benefits of Rent To Own include:

  • An easy to manage short term rental
  • Set weekly repayments
  • Lease rentals can be fully tax deductible
  • Standard rental so no need to manage depreciation etc
  • Can be used for almost anything over $10,000 dollars.
  • No residual risk
  • Clear fair wear and tear guidelines
  • Ability to use rentals as proof of repayment history increasing your chance for standard finance at the end of the rental period

Contact CoverU today to see how we can help you get what you need!

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1300 122 211