Rent-to-own vs. hiring equipment: Which is better for your small business?

For many small businesses, the prospect of getting finance approval is regularly put into the ‘too hard basket’ so they hire equipment. If they decide to go down the road of finance, they often get themselves locked into long term leases. However, as anyone in business knows, the key to success is being light on your feet and quick to get from A to B. You’re looking for a solution to fill a last minute order for a client, or pick up urgent stock, not a long term financial commitment.

At Naritas, we think we’ve found a product that is sure to appeal to businesses seeking that middle ground between complicated & slow long term leases and expensive hire costs.

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Unlike hire, you have the option to buy the commercial vehicle you’re renting, increasing the equity in your business. It’s not dead money!

Do any of these situations sound familiar?

  • You need a commercial vehicle for your new small business – but don’t have the cash to buy one outright.
  • You’re a startup with little or no trading history, and don’t qualify for a loan from a traditional lender, like a bank.
  • Your company is well established and can get finance, but you don’t want to be saddled with a five-year finance lease in uncertain economic times.
  • You want to save money by buying a used commercial vehicle, but can’t get finance because its age exceeds the lenders’ maximum.

Hiring a commercial vehicle, you think, might be the way to go—at least until you qualify for finance; save the money to buy the commercial vehicle you want; or the economy improves.

But there’s a faster, easier option: Rent-to-own!



  • Rent-to-own is a 12-month agreement that is more flexible than a bank loan or finance lease; and faster than saving for a new purchase.
  • Your rental payments are 100% tax deductible; and ‘off balance sheet’, which means your ability to borrow more money is unaffected.
  • Unlike hire, you have the option to buy the commercial vehicle, increasing the equity in your business. It’s not dead money!


Ownership and equity

  • The overriding goal of this product is to give you a leg-up into the future you dream of for your business.
  • At Naritas we feel that this product is an excellent fit for small businesses that are sick of traditional institutions that seem to favour red tape over logic, and who want a modern and exciting solution to obtain equipment that you need to grow your business.
  • Unlike hiring, renting-to-own provides a pathway to ownership, should you decide to buy the commercial vehicle. This means that with each affordable rental payment, you’re building equity in your business, which you can then use to finance its expansion.
  • If you decide to sell the commercial vehicle, you’ll get a return on your investment.

For any small business managing expenditure to facilitate growth can involve large upfront costs with a purchase, high costs leading to wasted resources with hiring or long & potentially complicated financial commitments with leasing – but this product truly is a win/win deal for those businesses wanting to balance such considerations.



Rent-to-own can even work for a startup with little or no trading history, that doesn’t qualify for a loan from a traditional lender, like a bank. Furthermore, unlike a traditional lease (which is typically 5 years), the payment arrangements are flexible & are typically for 12 month rolling terms.


It’s more flexible

At the end of your 12-month agreement, you can:

  • Buy the commercial vehicle. You’ll get a rental rebate of 75% of the net rent you’ve paid off the purchase price.
  • Return the commercial vehicle without penalty if the commercial vehicle is no longer suitable or your business hasn’t worked out as planned.
  • Continue renting. You’ll still have the option to purchase the commercial vehicle and receive a generous rental rebate; or to return the commercial vehicle without penalty.
  • Switch to a 36-month rental agreement. You’ll receive a weekly rental discount of up to 30%. At the end of the agreement, you can purchase the commercial vehicle for a nominal amount.

Hire vs. rent-to-own at a glance

Hire Rent-to-own
Expensive weekly hire fees Affordable weekly rental payments
Hidden fees (e.g. excess reduction) No hidden fees
commercial vehicle availability uncertain commercial vehicle available 24/7
Hire fees are dead money Build business equity with each rental payment
No opportunity to buy the commercial vehicle Opportunity to buy the commercial vehicle


Deal with a lender who looks for reasons to say ‘YES’!

  • Any age ABN accepted.
  • Any age asset.
  • Short, 12-month agreement.
  • Typically no director guarantees.
  • You won’t have to put your house on the line!


How do I get started with this promotion from Naritas?

To make an enquiry online, click here.

Alternatively please feel free to phone us on 1300 558 887 during business hours.