Exploring Clearlease’s Rent-to-Buy Option: A Flexible Financing Solution for Various Clients
In the world of financing, one size does not fit all. Every client comes with their own unique set of circumstances, and sometimes the conventional funding options simply don’t align with their needs. That’s where Clearlease steps in. As one of the leading finance consultancies, we pride ourselves on offering flexible solutions tailored to our client’s specific requirements. Today, we want to shed light on our rent-to-buy option—an alternative financing approach that has proven beneficial for a wide range of clients.
Our rent-to-buy option is designed to cater to those who face challenges in obtaining mainstream funding. Perhaps it’s a history of past credit defaults, a lack of trading history, or even a new startup venture that hasn’t yet established its financial track record. Additionally, individuals who have experienced unfortunate life circumstances that impacted their ability to work may find this option particularly suitable. Furthermore, clients who seek short-term equipment for a specific contract without committing to a long-term lease can also benefit from this arrangement.
So, how does the rent-to-buy option work? In this scheme, the financier purchases the required equipment on behalf of the business and rents it back to them for fixed payments over a predetermined period. At the end of the contract, the business has three choices:
- Hand the equipment back with no further obligations: If the equipment is no longer needed or the business wants to explore other options, they can simply return the equipment without any additional payments.
- Continue the rental agreement at a reduced rate: If the business still requires the equipment but prefers a lower rental cost, they have the option to extend the rental agreement at a reduced rate. This choice provides flexibility while ensuring continued access to essential equipment.
- Purchase the equipment outright: Should the business decide to retain ownership of the equipment, it can choose to buy it at either the market value or a pre-agreed value. This option allows businesses to make a long-term investment in their operations.
Typically, the rental contract runs for a 12-month term, with the possibility of renewal. For larger businesses, the rent-to-buy option can be structured as an off-balance sheet arrangement. This means that rental payments can be claimed as operational expenses, providing potential tax advantages and freeing up capital for other business needs.
Moreover, the rent-to-buy scheme offers an opportunity for clients who are currently unable to access mainstream funding to establish their businesses and demonstrate a positive repayment history. After the initial 12-month period, clients can potentially refinance with a mainstream funder, leading to reduced monthly commitments and broader financing options.
If the conventional funding avenues don’t seem viable for you or your business at the moment, the rent-to-buy option might be the perfect fit. Our experienced consultants are here to guide you through the process and help determine if this financing solution aligns with your specific needs. Don’t hesitate to reach out to our team today and discover the possibilities that the rent-to-buy option can unlock for your business.