Introduction of rental alternative to Australian market

Control Bionics Limited (ASX:CBL) is pleased to announce that it has introduced a facility whereby Australian customers can rent CBL products.

The introduction of a rental model has been driven by a number of Australian customers having access to CBL products delayed as a result of the time taken to obtain funding from NDIS or other external funders.

The rental model allows customers to obtain the use of CBL products immediately.

The products can continue to be rented for a minimum period of three months and a maximum period of 12 months. Once third-party funding is obtained, the rented units are purchased by the customers. CBL expects that the introduction of the rental model will accelerate the penetration of CBL products in the Australian market.

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Makes sense.  You wouldn't mind a little more detail about the impact on the financials.  Is a deposit required?  How many months rental does it take to recover the cost of the unit?  Is it coming from cash reserves?  What have they assumed in terms of credit losses and is it factored into the rental rate? Are they outsourcing the AR?

You could argue that it's not going to have a significant impact but they're the ones that reckon it's price sensitive...

[Small spec holding IRL]