Benefits of Rent-to-Own Programs

Having the right equipment for the job is crucial, but the investment can be shocking for any business owner. The loan process can also be intimidating and most people won’t have a large sum of money to purchase something like a forklift outright. If this sounds familiar, you might benefit from a rent-to-own program!

What is Rent-to-Own?

When you think of a rent-to-own scenario, you might find yourself wondering if it’s really worth it. Well, renting to own takes out the interest rate of a loan and allows you to borrow the equipment while making payments toward ownership! 

You can compare the process to leasing, but there will be a rental contract in place with the lender. At the end of the term or after a certain amount has been paid toward the equipment, you will be able to keep the machine instead of returning it. 

Why Utilize Rent-to-Own Programs?

Many times new business owners or homeowners will want to invest in a piece of equipment, like a forklift, but they’ll be unable to secure the funds to borrow a loan. It’s also possible that there isn’t enough credit history or available credit to establish a loan. 

In these scenarios, owners may find themselves in a bind. Renting and leasing can be a short-term option, but it doesn’t allow you to keep the equipment at the end of the day. With a rent-to-own scenario, you’re able to use the equipment right away and invest in ownership over a set period of time. 

This reduces the total impact of credit and takes out the need for a large down payment, however there will still be financial responsibilities associated with the agreement. 

How Long Will it Take to Become the Owner?

The rent-to-own period is largely determined by the amount paid each month and the terms you establish with the lender. Each program will be a little different and you may be able to reach an agreement based on your specific needs. Some programs will require at least 12 months of payments and some may even extend to a 36 month timeframe.

There can also be terms that require the lender to monitor the condition of the equipment and the conditions of the work spaces. You may be required to show proof of training and the ability to follow OSHA standards. These are factors you’ll need to determine directly with the equipment lender!

There are many reasons you may want to participate in a rent-to-own program! Our team at KMC Forklift is very excited to offer a new forklift rent-to-own option for our customers. Visit us in Bryan, TX, to discuss the available options. We proudly serve Caldwell, College Station, and Hearne.