Rent Try Buy gives contractors the confidence to seize new work.
The contractor had a difficult business decision to make, involving millions of dollars. They’d won a major roading contract but had only landed the first two years of a four-year job.
They needed expensive equipment for the road-building task – trucks, diggers, bulldozers, rollers and more. If the contractor wasn’t awarded the second two years of the contract, they faced being locked into multi-year commitments involving enormous capital expenditure.
That’s where Speirs Finance and their unique Rent Try Buy programme came in. The equipment the contractor needed was provided on a trial basis, with the flexibility to return at the end of the term. If they win the second part of the contract, they can keep leasing it, or request to buy it.
Sam Pomare, General Manager Speirs Finance, says the equipment is “rarely returned”, reflecting how well this type of option works for businesses. Over a 10-year period, he says, the vast majority of customers who have tried Rent Try Buy have ended up either continuing to lease or gone on to purchase the equipment. That includes the construction industry, forestry, earthmoving, quarrying and many other sectors where expensive specialist equipment is required.
“The customer often feels they are going out on a limb with this kind of commitment – especially in the tight economic circumstances in New Zealand over the last few years. Leasing it from us on a Rent Try Buy basis means they have access to considerable assets without having the upfront capital outlay.”
Flexibility is the biggest advantage for customers, Pomare says, reducing uncertainty in difficult economic times. Increasing numbers are taking advantage of Rent Try Buy to manage cashflow, scale capability to workload, and take on new work quickly.
AB Equipment General Manager Sales Graeme Wellesley-Davies sees firsthand just how “challenging” the market is right now.
“We’re seeing different types of customers. Some come in ready to pay cash for a $500,000 piece of equipment and want it straight away. Then a few days later, another customer will call and say, ‘Can you cut us a deal? Can we work something out?’. I tell them about Rent Try Buy, and they say that’s perfect – it takes the heat off them in this market. They ask, ‘Can you do that?’ I say, ‘I can’t, but Speirs Finance can.’
“Often customers are not 100% sure about their workload, so they’re not sure about purchasing the machine. Rent Try Buy gives them the option to step away at the end of the term or purchase it. The market is really interested in Rent Try Buy because conditions have changed significantly. Contractors are working with tight margins, which makes flexibility around equipment purchases even more important.”
Speirs Finance CEO Michelle Herlihy says long experience as specialist business lenders has provided unique insight to customer needs: “There are times when cashflow is tight and other times when opportunities emerge quickly. We structure finance that works with those cycles, not against them. That might mean seasonal repayments, extended terms, or balloon payments – whatever helps a good business maintain its competitive edge.
“We’re starting to see early signs of construction activity picking up, particularly around infrastructure projects. Contractors who’ve been through a tough couple of years know they need to be ready when opportunities arise. Our leasing solutions mean they can access the equipment they need without tying up capital.
“Those who thrive coming out of this period will be the agile ones – ready to act on opportunities while managing risk. We’re focused on giving businesses financial tools to grow strategically, not just survive.”
Pomare says Rent Try Buy can also empower companies to make changes they might not otherwise contemplate. He cites the example of a quarry operator trialling a new machine from a brand different to what they normally use. “They are looking at it on a Rent Try Buy basis and, at the end of the term, can return it, continue leasing, or request to buy it.”
So what happens when a piece of valuable heavy equipment is returned? “We have an expert asset management team with extensive knowledge of the machines and the industries who manage the second life of the asset,” he says.
While civil construction and earthmoving remain core sectors, Rent Try Buy is being adopted wherever capital equipment decisions carry uncertainty. That includes compact processing equipment in small manufacturing operations, horticultural businesses investing in advanced sorting technology, and healthcare practices evaluating the latest medical imaging equipment.
In uncertain times, the businesses that thrive aren’t necessarily the ones with the most capital – they’re the ones with the most options. Rent Try Buy gives Kiwi businesses the flexibility to say yes to opportunities without betting the farm on it.
Ready to explore your options? See how Rent Try Buy could work for your business at speirsfinance.co.nz/rent-try-buy/