FAQ

Who can rent?

Any ABN holder may qualify for a Priority Rentals facility – this may be a sole trader, partnership, company, etc. Individuals may also be considered for rental finance subject to certain criteria.

What can be financed?

Priority can finance all services related to a specific asset. These services may include software, hardware, insurance, services, installation, training, maintenance, and licenses. The total amount approved will depend on the financial strength of the customer.
There is usually no restriction on the equipment financed under a rental. The main rule is the equipment needs to be used for business purposes. If this can be confirmed, most equipment will be considered for funding under a rental arrangement.

Why should you rent?

• In most situations rental finance provides better cash flow.
• Rentals do not affect your capital expenditure budgets as they are accounted for as operating expenses.
• Rentals are usually 100% tax deductible for businesses dependent on equipment use.
• Rentals eliminate the red tape associated with CAPEX.
• Rentals provide an easy technology refresh, allowing customers to upgrade their equipment and/or services at any time.
• A sale and leaseback would allow the customer to acquire new equipment and release capital into their business.

Can I upgrade the equipment during the term?

Yes, at any time during the rental you can upgrade equipment subject to terms and conditions.

What happens at the end of the term?

Once all rental obligations have been met, you may:

• Offer to purchase the equipment from Priority for fair market value,
• Continue to rent the equipment,
• Upgrade the equipment, or
• Return the equipment to Priority with no further financial obligations.

What is the interest rate?

There is no specified interest rate in a rental contract.

It is because you are renting the equipment from PFC for a specified time, rather than obtaining a loan to purchase it, that it is a tax deductible expense.

What happens if equipment is stolen or destroyed?

It is the renter’s obligation to ensure the equipment is comprehensively insured for the duration of the rental contract. PFC must be immediately informed of any event where the renter may make an insurance claim. This may result in replacement of the stolen/destroyed goods or payout of the rental contract.

How can we reduce administration of making monthly payment?

Payments are usually arranged on a monthly direct debit basis.

Why not use our own finance contacts/banks?

• PFC provides a rental finance option with superior tax advantages and more flexibility than a bank loan or lease.
• PFC will always be exceptionally competitive when it comes to banking products.
• PFC provides flexible upgrade options for IT and other equipment that few banks can match.

Can I cancel and hand back the equipment before the end of the term?

If you return the equipment before the end of the term, you must still pay the total rental payments for the originally agreed period. Most clients prefer to upgrade to new equipment and commence a new rental agreement.

Priority Rental

Priority Rentals is a fixed term rental agreement that enables customers to obtain IT and business equipment with the option to upgrade within or at the end of term. Priority Rentals frees up capital as payments are 100% tax deductible.

Priority Lease

Priority Funding offers finance leases to businesses. A finance lease is a commercial product enabling the customer to have use of a car, commercial vehicle or business equipment without a large capital outlay.

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