Helping a Solar Contractor Shift from Dry Hire to Ownership with RPO

A small but fast-growing civil contractor specialising in solar farm projects needed a more sustainable approach to equipment use. Operating for under three years, the business focused on delivering civil works for smaller solar projects. Until recently, the team had relied exclusively on dry hire for equipment—renting the same machines for 8–12 weeks at a time and returning them between projects.

Having built a strong project pipeline, the business was now ready to transition away from dry hire and towards equipment ownership. But with an ABN under two years old and no property held by the directors, traditional finance options were limited.

The Challenge

The client faced several common barriers:

• Limited finance options due to a relatively new ABN and no property ownership.
• No equipment on balance sheet, making cash flow management harder between projects.
• High cost of dry hire, with no long-term asset value or equity building.
• Gap between jobs: the team regularly had two to three weeks downtime between projects, which made long-term rental inefficient.

Although finance may have been technically possible, the conditions and structure didn’t align with how the business operated.

The Solution

Iron Capital offered a Rent-to-Own (RPO) structure tailored to the client’s working model:

1. Two used Bobcat machines were financed: a 5.5-tonne excavator and a track skid steer loader, with a total deal value of approximately $170,000.
2. 12-month RPO terms, with the client building 50% equity in each asset by the end of term.
3. Cost-effective alternative: monthly payments were significantly less than traditional dry hire quotes—especially for the excavator.
4. Pipeline-based assessment: Iron Capital worked with the client to understand their historical equipment use and upcoming project pipeline to determine fit and risk.

The entire assessment and funding process was completed within three weeks per asset.

The outcome for the Customer

• Two machines funded for a total of ~$170,000 under 12-month RPOs.
• Monthly cost savings compared to dry hire—10% lower on the skid steer and considerably lower on the excavator.
• Long-term equity: client will own 50% of both machines at the end of term.
• Flexible alignment: payments match the business’s project cycle, removing the inefficiencies of off-hire downtime.

Key Takeaway

“This was a classic case of RPO being a smarter alternative to dry hire. The client was used to paying top-dollar to rent the same machines over and over—now he’s building equity instead.”

— Iron Capital BDM

This deal showcases how Iron Capital’s Rent-to-Own model is ideal for new or asset-light businesses with a clear project pipeline but limited access to traditional finance. For this solar contractor, the move to RPO was not just a financial decision—it was a strategic shift toward greater independence and asset control.

For emerging contractors in construction, energy, and infrastructure, the dry hire model can quickly become a financial drain. RPO offers a smarter path—lower cost, more control, and ownership at the end.

Iron Capital doesn’t just facilitate getting equipment equipment to work — we fund growth.