Rental Concept


Generally, the purchase of expensive equipment, furniture, fixtures and fittings and vehicles is most efficiently funded through some form of asset finance.

Rental agreements provide the customer with uninterrupted use, rather than ownership, of the goods, i.e. the customer has the option to take ownership or to return the goods to the bank at the end of the agreed period, subject to the conditions of the agreement. It provides for negotiated periods at an agreed interest rate with agreed monthly rentals (payments).

Rental Agreements are suitable for:

  • Businesses using goods with either a high obsolescence or which are replaced on a regular basis, e.g. computer equipment.

  • Businesses whose primary needs are for the use of the goods rather than ownership, e.g. photocopiers and fax machines.

The main features are:

  • Structured Payment Options.

  • Repayment periods up to 60 months.

  • No deposit.

  • Interest rates are linked to Prime, or fixed for the period.

  • Residual Values may be negotiated to avoid having to pay the full amount over the agreed period.
  • All goods rented must be comprehensively insured during the term of the agreement.

The main benefits are as follows:

  • Customers are able to enjoy the use of expensive equipment without any initial capital layout.

  • Ownership of the goods does not pass to the Hirer when the last payment is made. This may however be negotiated at or before that event occurring.

  • The customer gets the benefit of any resale value if he/she exercises the ownership option.

  • Monthly rentals are 100% tax deductable.

  • Upgrade of the equipment during the life of the agreement.

 




If you cannot find what you were looking for, please feel free to contact us on 012 346 4730.
© 2013 All rights reserved.
©2013 Technofin