Iron Capital recently helped Jake Anderson from a national equipment finance brokerage secure a Bobcat Skidsteer Loader 
Andrew Stewart from Pacific Finance recently secured some heavy mobile mining equipment for a publicly listed client.
FAQ
What is Iron Capital's 'Rent-to-Purchase'?
Iron Capital's Rent-to-Purchase is a flexible 12 to 24-month rental program for both new and used heavy equipment. You'll pay monthly rent in advance, giving you immediate access to the machinery you need today, with a clear path to ownership tomorrow.
Benefits:
Start building your fleet with Iron Capital's Rent-to-Purchase today!
Benefits:
- Affordable: Typically priced competitively, often similar to Dry Hire.
- Tax Deductible: 100% of your rental payments are tax deductible.
- Flexible: At the end of your rental term, you have several options:
- Purchase the machine
- Extend the contract for another 12 months at a reduced rent
- Return the machine if no longer needed and start fresh with a new one
- Preserves Debt Capacity: Because it's off balance sheet, Rent-to-Purchase allows you to preserve your borrowing power for other needs.
Start building your fleet with Iron Capital's Rent-to-Purchase today!
What’s a typical deal size?
Iron Capital’s Rent-to-Purchase is perfect for heavy equipment in the Civil, Mining, Quarrying, Transport (heavy/bulk haul), and Agriculture sectors, and suits both new and older machinery. A typical deal size is $150 -$250k, ranging up to $750k for a single asset.
What is the interest rate?
Rent-to-Purchase is a rental arrangement, so there is no interest rate. Rentals are priced competitively compared to Dry Hire and are 100% tax deductible.
What do I have to pay?
You pay fixed monthly rentals, in advance, for the agreed term. At the end of the term, you have the option to purchase the machine at a pre-agreed price.
How flexible is Iron Capital's Rent-to-Purchase?
Very flexible! This arrangement works well for both new and used equipment (up to 10 years old at the start of the contract). Machines can be sourced from dealerships, auctions, or private sales.
At the end of the term, you can:
At the end of the term, you can:
- Purchase the machine at the pre-agreed price
- Return the machine
- Extend the contract for another 12 months at a reduced rent
What happens if I forget to tell Iron Capital what I’d like to do at the end of the term?
We’ll remind you 90 days before the end of your contract to discuss your options. If you're unsure and we don’t hear from you, no worries! You can continue renting the machine on a month-to-month basis for as long as you need.
How do I pay my monthly rent?
We make it easy by setting up a Direct Debit Authority on your nominated account at the start of the contract. This allows us to deduct your monthly payments directly from your bank account.
What happens if I miss a payment?
If a payment is missed, we’ll notify you and give you the opportunity to ensure sufficient funds are available. We will retry the direct debit or offer a manual payment option. Please note, late payments may incur a default fee.
Who owns the machine?
During the rental period, Iron Capital remains the owner of the machine, while you have full use and responsibility for maintaining it. You have the option to purchase the machine at the end of the term at the agreed buy price.
Do I still have to pay rent if the machine isn’t working?
Yes, as the user, you're responsible for selecting a machine that fits your needs and ensuring it is properly maintained throughout the rental period.
What is required for rental payments under a new contract?
For new customers entering into a Rent-to-Purchase agreement with Iron Capital, the first rental installment must be paid directly with cleared funds before settlement. This ensures that everything is in place for a smooth start to your agreement.
How are rental payments collected for existing contracts?
For existing customers, rental payments are collected monthly in advance via direct debit from your nominated account. This automated process makes it easy to stay on track with your payments.
How does the pricing work?
Pricing for Iron Capital's Rent-to-Purchase agreements is risk-based, taking into account the credit risk associated with the Equipment, the customer, and their location. This ensures that the pricing reflects the level of risk involved, providing a fair and tailored solution for each customer.
Can I stand down the equipment during bad weather?
No, the rental agreement is a flat monthly arrangement, meaning the payments remain consistent regardless of weather conditions. As the renter, you are responsible for the equipment's insurance and ongoing maintenance throughout the term of the agreement, even during periods of non-use.
What insurance do I need to provide for the equipment?
Renters are required to provide an insurance certificate of currency upon settlement and annually thereafter. This certificate must:
- Note Iron Capital Group as an interested party
- Include public liability coverage of at least $2 million
- List the specific equipment details
- Insure the equipment for the full invoiced amount
Where can I source the equipment for my Rent-to-Purchase agreement?
You can source equipment from a variety of options, including:
- Franchise Dealers
- Used Equipment Dealers
- Auction Houses
- Private Sales (arms-length, subject to inspection requirements)
What are the eligibility requirements for a Rent-to-Purchase agreement?
To be eligible for Iron Capital’s Rent-to-Purchase program, you’ll need to meet the following criteria:
- Business Tenure: Your business must have been operating for at least 12 months with a registered ABN and GST status. Exceptions may be made with additional credit support.
- Credit History: We’ll run a credit check on new clients. A single resolved default is acceptable if it was due to a trade dispute or utility bill issue. Defaults with finance companies may require further approval.
- Directors' Guarantees: A directors' guarantee will be required in most circumstances.
- Documentation: You’ll need to provide an application form and a statement of assets and liabilities for directors.
