Rent try buy is an option for business owners who do not want to get locked into a long term contract.  The agreement allows you the flexibility of renting the equipment for your business at low rates and to own them later on.  Rent Try Buy is a new and flexible alternative to the traditional lease agreements.  This scheme is designed to minimize the cost of the equipment or machinery you buy so that you can save up your capital for using it for the business growth.  The scheme allows a person to rent a machine for a low rent at any time. The option is to buy the product within 12-24 months at 75% rebate on the paid up rent. Rent Try Buy’s main advantage is that you can buy quality equipment on a trial basis so that you buy it later only if you choose to buy it.  The rental agreement is flexible so there is the option to rent it for trying and returning or rent for trying and renting again.  This frees up the capital for business use. The customer can use the buy option at the end of the trial period by paying the original invoice price minus the rental payments made already.

The Process

1. Purchasing equipment and get a 75% rental rebate after purchasing anytime during the 12 months.
2. Equipment can be returned after 12 months if there is no more need for the rented equipment
3. You can continue to rent it after the first 12 months that would reduce the purchase price.
4. You can add additional equipment up to the limit allowed for your approval.
5. No extra documentation fees or separate agreement for the additional equipment.

Benefits of Rent Try Buy

 

1. Purchasing equipment and get a 75% rental rebate after purchasing anytime during the 12 months.
2. Equipment can be returned after 12 months if there is no more need for the rented equipment
3. You can continue to rent it after the first 12 months that would reduce the purchase price.
4. You can add additional equipment up to the limit allowed for your approval.
5. No extra documentation fees or separate agreement for the additional equipment.
6. You pay low weekly rental repayments.
7. You can free up your valuable working capital.
8. Rental payments are 100% tax-deductible
9. You are able to try before you buy.
10. Peace of mind from knowing you’re not stuck with equipment that isn’t perfect for your needs.
11. 12 month agreement – without getting locked into a long term lease.
12. Renting is off ‘balance sheet’- it doesn’t affect your capacity to borrow for future expansion.
13. Application process is simple and without any obligation.

In the housing industry

The rent try buy deals offered by individual property traders. It is beneficial to tenants who want to buy their own home but do not qualify for mortgages due to poor credit records or any other financial problems. It involves an ‘option’ to buy which is paid for the option to buy the property at an agreed price and date. You pay an extra amount towards the deposit for buying the property. You can rent occupy the property and make monthly rent till you are ready to buy the property. The lease period usually 2 to 5 years and at the end of this period you can obtain a regular mortgage and own the property. Till such time, the property belongs to the landlord. These rent-try-buy deals are usually offered by property traders to those people who want to own their homes but do not have enough savings or are not able to meet the stringent approval criteria of banks.