THE RENTAL
Also known as Off-Balance sheet Rental Finance, a
monthly rental enables the client to compare the actual
monthly cost of the new technology, to the income
generated or the cost savings to be realized from the new
technology.
Benefits of rental finance
Rentals can be tailored to your individual needs. We can use annual escalation in line with inflation and reduce the initial rentals
Rentals are 100% tax deductible
You will be entitled to deduct VAT paid from VAT collected which will result in a major saving
As rentals are an operating expense and not capital expense, they are not governed by capital expenditure budgets
Software can be included on rentals but not on a lease
Further on-going rental secured by the inclusion of a simple upgrade option free of additional VAT on the original equipment
No deposit is required on a rental agreement
As rentals are off balance sheet, your equity/ current/ return on assets ratios are improved and do not have to be capitalized like a lease
At the end of initial rental period you can continue renting the equipment for a nominal amount per annum
Allow businesses to keep up with lastest technology