IT financier Moneytech has launched RentCard, a service that gives resellers the ability to pass on pre-approved finance for rented IT equipment.
Hugh Evans, managing director and founder of Moneytech, said the RentCard would be a direct competitor to FlexiRent and RentSmart but would address the SME, enterprise and government market as opposed to the consumer market.
Under the RentCard service, the end user could apply for a credit limit higher than what is initially required. That way, the customer would not have to come back to be reapproved and would have credit for 12 months worth of purchases, Evans said.
For example, an end user could apply for a $50,000 credit line, spend $10,000 today and use the remained as required.
At the end of the contract -– which would run from 24 to 60 months -– the buyer would be required to give 90 days notice as to whether it wanted to buy the equipment, keep renting or hand it back, Evans said. There would be a residual cost if the customer wanted to purchase the gear, he said.
Resellers wanting to offer the service would go through an accreditation process. Evans said Moneytech now had staff in Sydney, Brisbane, Melbourne and Perth that would visit resellers and teach them how to grow their business using the service. Consultants would also do trips to Adelaide if required, he said.
Evans said more companies are now realising the benefits of renting IT equipment in order to keep these costs off their balance sheet.
Volume-based pricing is also available with the card. Evans also claimed that MoneyTech was "more aggressively priced" than its competitors.
RentCard is 100 percent backed by MoneyTech and not the banks, he said.
The company was working on five deals already, with a $120,000 rental contract being the largest to date. "We’re [also] talking to some guys for a transaction of $2.5 million," he said.
End users can rent hardware, software and office equipment using the RentCard.