A rental financing agreement enables a business to upgrade equipment over the term of the lease. This type of agreement is perfect for businesses who require high cash flow and who do not require to own equipment that quickly becomes obsolete.
Such rental agreements are most commonly used for technological equipment such as computers, photocopiers and communication, scientific and medical equipment.
Rented equipment is usually returned to the supplier at the end of the agreed period but can be purchased at a negotiated value. Renting allows a business to reinvest their cash flow or capital into the business, rather than tying up the funds in equipment that quickly loses its resale value.
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