We listen, we care
Rental Finance
-
intellichoice
What is Rental Finance?
Rental finance involves leasing business equipment instead of purchasing them outright. It involves rental agreements on a broad range of assets that help businesses make better use of their capital.
Why sink all your valuable capital into owning assets that depreciate in value quickly? Renting is the better option because you can utilize tech, equipment, and other assets without the overhead expense of purchasing them. Moreover, you spread out the cost over the asset’s useful life.
Intellichoice has access to over 40 different lenders to help your business reach the next level. Operate with the latest technology, and broaden your reach with our rental finance options. We work with you to save time and resources that are crucial for your operations.
Talk to our loan specialists about rental finance
-
intellichoice
Difference Between Renting and Leasing
Comparison: Renting vs. Leasing
RENTAL LEASE Type of products and equipment Can fund both tangible and intangible products Limited to certain types of products and equipment Ownership afterward No risk of ownership to the renter Guaranteed ownership to the lease at the end of the term Flexibility Much more flexible with equipment exchange, restructuring progressively to one repayment package, etc. No flexibility to upgrade the equipment nor to add to the lease after the agreement Balance Sheet Is not included in the Balance Sheet Can interfere with the Balance Sheet. Tax implications 100% tax deductible 100% tax deductible if structured properly -
intellichoice
Which Businesses Does Rental Finance Apply?
Renting instead of buying eases your initial expenses of buying your equipment, freeing up your capital. Not only can you save money, but it’s also a great way to keep up with the latest technology. You can upgrade without the cost of disposing of old equipment.
Rental finance can apply to:
- Office equipment (e.g., computers, printers, photocopy machines)
- Industrial processing machinery
- Medical equipment
- Security systems
- IT tools (e.g., software, networking systems, and routers)
- Heavy-duty construction trucks
- Agricultural vehicles
Whatever the industry – healthcare, corporate, construction, and more – you can explore rental finance. Intellichoice is here to answer your questions and help prepare your loan application. With us, you can enjoy the benefits of using the latest equipment without the steep upfront costs
-
WE ARE TRUSTWORTHY
Advantages of Rental Finance
Here are the top benefits of rental finance:
- Staggered Expenses: Having the rental expenses spread over the rental term allows your business to plan your finances and cash flow to cover the monthly payments. You’re much more prepared for the costs.
- Flexible Terms:Â Rental agreements allow different options for you when the rental period ends. For instance, you could continue to rent, return the equipment, buy it, or trade in for an upgrade. Having the option to rent allows you to grow and make some changes at your own pace.
- Tax Deductible:Â Renting equipment is 100% tax deductible because it is considered an operating expense.
- Straightforward Application: Applying for equipment rental finance is fairly simple, as it won’t involve the financial paperwork that traditional loans do. Banks and non-traditional lenders offer this type of financing.
-
intellichoice
Is Rental Finance Right for You?
Renting equipment has its fantastic benefits, but there are big considerations to take note of. First, rental costs could also add up over time, and you could end up paying a huge deposit or additional fees for installation, delivery, and pickup. Additionally, leasing agreements are sometimes more inflexible to negotiate than buying the equipment or tools outright.
As with any business decision, considering all the pros and cons before opting for rental finance means consulting with loan specialists. Intellichoice can facilitate research on your industry to check if renting equipment and accompanying lease agreements are suited for your needs.
-
WE ARE TRUSTWORTHY
Why Choose Intellichoice
Finding time to study equipment financing is hard when you have a business to run. Here at Intellichoice, our loan specialists have the experience to negotiate the most favorable terms and rates. We are ready to help you structure the loan, and getting your business the right rental financing.
Working with us saves you time and money, as we handle the task of finding the right financing option from trusted lenders. Focus on your business and talk to us today!