Financial Terms Glossary

Equity Rental

Formal

A term used in some industries to describe a blend of two types of acquisition method - rental and purchase. Typically the customer or equipment user will commence making rental/staged payments for equipment but has a right to convert to full asset ownership upon settlement of a certain number of rental payments.

Informal

OK, so you don't have any money but you still have a business to run. You need some big expensive solution - but you don't want to rent it...because you feel that is expensive...so you want to buy it. Equity rental is an installment agreement with a right to purchase after the original quoted sale price has been repaid. It's a best of both worlds solution to help technical strategists get what they need.

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