Rental AgreementsRental Agreements

Rental agreements provides clients with uninterrupted use of the equipment, rather than ownership of the equipment. The client has the option to take ownership of the equipment or return the equipment back to the bank at the end of the finance term, subject to certain terms & conditions.


  • Repayment periods range from 12 to 54 months for Non-Taxed –Based customers i.e. man in the street”
  • Repayment periods range from 12 to 60 months for Tax-Based customers and companies
  • Minimum deposit of 10% required from Non-Taxed-Based customers
  • There is no minimum deposit required for Tax-Based customers, however deposits would be accepted
  • Interest rates are either linked to Prime or fixed for a period
  • VAT is NOT capitalised and does not form part of the original debt. VAT is paid on the value of the each month’s rental payment
  • Residual Values (RV) may be negotiated to avoid having to pay the full amount over the agreed rental period. These RVs may or may not be “guaranteed” by the bank
  • All equipment rented must be comprehensively insured during the term of the agreement


  • Reduces monthly payments
  • Clients are able to enjoy the usage of expensive equipment
  • Ownership of the equipment does not pass to the Client at the end of the rental term. Ownership can be negotiated on or before final rental payment.
  • Client receives full benefit of any resale value if ownership is transferred
  • The size of the deposit can be structured to suit the needs of the Client
  • The repayment period can be structured to suit the needs of the Client
  • Monthly payments are TAX deductible

Best Suited For:

  • High value vehicles
  • Businesses using equipment who don’t want a depreciating asset on their books
  • Individuals whose primary needs are for the use of the goods rather than ownership
  • “The man in the street”
  • Tax-Based clients
  • Companies & Corporates