Equipment rental specialist Yellowgate outlines the reasons why renting machinery before buying can be a prudent financial decision for many businesses.
Noel Rosario has transitioned from a career steeped in Caterpillar’s power generation sector to his current role as National Sales Manager at Yellowgate, a specialist in long- term equipment and machinery rentals.
Leveraging his extensive background in construction and related industries, Noel advocates strongly for the rent-to-own model as a superior alternative to cash transactions, business loans, chattel mortgages, operating leases, or the use of home equity lines of credit.
His mission is clear: to educate the market on the advantages of this approach.
“Rental paired with an ownership option is the way to go, always,” Noel said.
“It’s a strategic choice for companies wanting to access machinery fast, manage costs, reduce risks, and maintain operational flexibility.”
The advantages are compelling:
- Operational efficiency: Minimising downtime is critical in any project. By opting for rental solutions, companies sidestep hefty upfront maintenance and repair costs, ensuring optimal productivity and timely project completion.
- Financial flexibility: Rent-to-own requires smaller initial payments compared to outright purchases, enabling companies with limited capital – or options – to secure business critical machinery.
- Cashflow management: Regular rental payments streamline cashflow management, bypassing the need for substantial capital expenditure (CAPEX).
- Equipment testing and evaluation: Businesses can trial preferred equipment under real-world conditions over extended periods, assessing its suitability before committing to the purchase —ideal for testing emerging or lesser-known challenger OEM machinery.
- Access to latest technology: Renters gain access to cutting-edge equipment and technology without shouldering the associated high costs.
- Seasonal adaptability: Rental arrangements accommodate businesses with fluctuating or seasonal demands, allowing for flexible scaling without the burden of equipment idling in a corner during off-peak periods.
- Equity and credit advantages: Each rental payment contributes toward ownership, making it a valuable investment. Timely payments also bolster credit scores, easing future access to traditional financing.
- Tax benefits: Rental payments are tax-deductible operational expenses (OPEX), potentially offering superior tax advantages* compared to the combination of interest payments and tax deductions for depreciating assets.
Noel emphasised Yellowgate’s commitment to serving industries like construction, civil works, mining, agriculture, and heavy haulage transport.
“Our strength lies in providing straightforward equipment funding solutions coupled with a national dealer network,” he said.
“This allows us to source a diverse range of commercial assets, at competitive prices, tailored to fit any business size, lifecycle stage, or budget.”
Drawing from his extensive tenure at Caterpillar, Noel understands firsthand the diverse needs of clients.
“I empathise with our clients seeking specific equipment,” he said. “And I thrive on swiftly meeting those needs.”
His recent experience highlights Yellowgate’s rapid responsiveness—like sourcing, approving, and deploying equipment to site within 72 hours of a client’s initial enquiry.
Moreover, Noel has cultivated a sales team renowned for their dedication and industry intel.
“Our team prides itself on understanding not just equipment requirements, but also the personal challenges faced by our clients,” he said.
“Service excellence is crucial to achieving our growth goals and becoming the preferred equipment partner for businesses looking to expand.”
Yellowgate presently oversees over 390 rented machines nationwide, including hydraulic excavators and tippers—among the most sought-after assets.
Its portfolio extends to wheel loaders, motor graders, scrapers, crawler dozers, and grinders, catering to a diverse customer base of tier-one contractors to sole operators.
The equipment finds application across Australia — from mining in Western Australia’s Pilbara region to quarrying in Central Queensland and telecommunications projects in Tasmania.
Noel’s leadership underscores Yellowgate’s commitment to operational excellence and customer-centricity.
By combining industry expertise with a deep understanding of client needs, Yellowgate continues to set benchmarks in the equipment and machinery rental sector, ensuring sustained growth and success for their clients nationwide.
The Yellowgate Package
The rent-to-buy process is as easy as 1, 2 and 3:
- Specify the equipment you need to Yellowgate
- Yellowgate can procure it OR you can source it yourself
- Yellowgate purchases the equipment then rents it to you for 12 months
During the 12-month term, Yellowgate customers have the opportunity to purchase the equipment and receive a rental rebate off the purchase price.
At the end of the 12-month term, Yellowgate customers can:
• Continue renting month to month – the purchase price continues to reduce
• Enter a new 12-month discounted rental agreement, with an ongoing reduction to the purchase price
• Return the equipment with no further rental obligation
• Purchase the equipment and receive a rental rebate off the purchase price.
To leverage Yellowgate’s offering on your next project, visit ygg.com.au or call the team today on 1300 225 594.
*Taxation and accounting considerations are general advice only. Applicants should seek independent, professional advice from their accountant before making any decision based on this information.