Keep projects moving in 2025 and into 2026 | Smarter Rent to Own solutions

By January, many councils and contractors alike are running on tighter budgets than they planned. Capital spend that looked healthy in July has already gone into major projects. Add in repairs, unexpected purchases, and ageing fleets, and there’s not much left in the tank.

The work doesn’t stop, though. Roads still need grading. Crews still need gear. Dry hire chews through operating budgets fast with nothing to show at the end. That’s where Rent to Own comes in. Clear monthly payments protect cash flow, machines are on site fast, and every dollar counts towards ownership (if you want it).

The mid-year budget squeeze

By January, most councils and contractors have already committed their capital budgets and are already planning spend for next financial year. Big-ticket projects are locked in early, but day-to-day work keeps rolling. As machines age, repairs pile up, and operating budgets bear the brunt. The need for reliable gear doesn’t ease off, but the cash to buy it outright usually has.

A 2023 report from SGS Economics & Planning found that over half of Australia’s councils didn’t bring in enough revenue to cover day-to-day costs. Add in poor sustainability scores, and it’s no surprise that essential services are under pressure. Contractors face the same squeeze, with CapEx tied up in existing plant and limited flexibility to add more equipment when project demands shift.

Dry hire might feel like a quick fix, but the numbers tell another story. Daily rates stack up fast, draining what’s left of the budget. At the end of the hire, there’s no asset added to the balance sheet or equity built. The payments only cover the use of the machine.

Before budgets run dry, it’s worth considering all of your options. Talk to Yellowgate about how Rent to Own could work for your next project.

Why Rent to Own makes sense

Come January, capital budgets are largely spoken for, but projects don’t stop. That’s when operating spend often becomes the only lever left to keep projects moving.

Rent to Own sits in that space, giving you the flexibility of monthly budgeting with the long-term upside of ownership, without the heavy upfront cost of a purchase and capital budget burden.

Instead of burning cash on daily hire rates or waiting weeks for finance, Rent to Own keeps work moving with:

Predictable monthly payments – treated as an operating expense, not big upfront outlays.
Fast approvals – often within 24 hours, so machines can be on site when you need them.
No impact on CapEx – a stake in ownership over time without draining capital.
Equity building – a portion of every payment can accrue toward ownership, if you choose to buy.
Flexibility at the end – you can choose to upgrade, purchase, or return the machine.

It’s a way for both councils and contractors to protect cash flow, secure the right gear quickly, and keep options open when budgets are tight and uncertainty is high.

How projects keep moving when budgets are tight

Take a regional council facing summer storm or flood damage. Their capital budget’s spent, and waiting weeks for finance isn’t an option with roads closed. With Rent to Own, they could have a late-model grader on site within days as soon as it’s safe to do so. Monthly payments fit into the operating budget, and each one contributes toward ownership if they decide to buy.

The same applies to a contractor under pressure to deliver a large road project. Capital is tied up in plant already on site, but extra machinery is still needed to stay on schedule. Rent to Own gives them the option to secure the gear quickly, keep cash flow steady, and decide later whether ownership makes sense.

In both cases, Rent to Own turns a budget squeeze into a pathway to long-term assets.

Planning beyond budgets

Rent to Own gives councils and contractors breathing room today and lasting benefits tomorrow. Equipment secured now keeps projects moving through the year, with steady payments that protect cash flow and the option to build towards ownership over time.

With a Rent to Own plan, there’s no need to pause projects until the next budget period. Equipment is already in use, payments are predictable, and when July arrives, you choose whether to purchase or return.

Rent to Own vs dry hire at a glance

Councils and contractors often weigh up Rent to Own against dry hire. Both provide access to equipment without a large upfront outlay, but the way costs, ownership, and flexibility are handled is different.

Here’s how they compare:

	RENT TO OWN	DRY HIRE
Cash flow	Regular monthly payments, treated as operating expenses.	Daily or weekly hire charges, also treated as operating expenses.
Ownership	Option to purchase at the end of the term, with payments contributing toward the final price.	No option to purchase.
Equipment choice	Equipment can be sourced to your exact specifications, including brand preferences and modifications	Limited to what’s already in the hire fleet, with fewer options for tailoring.
Cost	In many cases, monthly rent-to-own payments are comparable to dry hire rates (and sometimes lower).	Hire charges are set daily or weekly and can add up quickly over longer periods.
Best suited to	Projects running 12 months or longer, or ongoing work where the same equipment is needed regularly.	Short-term or occasional projects where equipment is only required briefly.

When machines are tied to ongoing work or when there’s value in turning operating spend into a lasting asset, Rent to Own gives councils and businesses more control, more flexibility, and a pathway to ownership.