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.

Real-world Example

A company rents equipment where part of each payment builds up value the customer can later put toward owning the asset - an equity rental structure that blends the flexibility of renting with a path to ownership.