Renting vs Leasing

 

If you’ve made the smart decision not to tie up capital in equipment, you now must weigh the option of renting against the more common financing option: leasing.

While leasing may look like a good idea at first glance, you need to take into account the full impact leasing equipment will have on your business.

Leasing   GoGetta Rent-Try-Buy™
× Four-year fixed contract   - Off-Balance Item
× On-balance item    - No Director’s Guarantee required
× Director’s guarantee required   - Buy with 75% rebate on the rent you’ve paid
× No discounted purchase option   - Return or continue renting (& lower the purchase price)
× Stuck with the equipment   

Leasing requires Directors’ Guarantees – which puts your personal assets (your home) on the line. Our rental agreement does not require Directors’ Guarantees.

A lease is a balance sheet item – which reduces your equity, your ability to borrow and, accordingly, your availability of working capital. Rent is an 'off-balance' sheet item (like salaries or electricity). This means that rental contracts have no impact on your equity, or on your ability to borrow.

A lease requires a lot of paperwork and binds you into a four year contract.  A GoGetta Rent-Try-Buy™ Agreement involves minimal paperwork, meaning you can get the equipment you need immediately.

As you can see, renting offers a level of flexibility that neither purchasing nor leasing can match.

To learn more about how our equipment rental option can improve your availability of working capital – and, accordingly, increase the rate of growth of your business – contact us today!

Want to know what your repayments would be? Check out our Rental Calculator.