Finance Options

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Finance Options

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Finance Options

An affordable means of financing non-income generating capital equipment. To assist yourselves in deciding on which financing option would best suit your needs, we have summarised the salient points of the rental option.

Advantages:

Monthly rentals of capital equipment is an affordable option allowing you the use of the equipment without any capital outlay.
Rentals are 100% tax deductible as an operating expense thereby minimising income tax obligation.
Payment of VAT upfront is avoided and thus is not capitalised over the period of the agreement. The customer will be entitled to claim monthly VAT payments made.
As rentals are an operating expense and not a capital expense, they are not governed by capital expenditure budgets.
As rentals are totally "off balance sheet" current and return on asset ratios are improved. There is also a saving of costly administration as taxed asset registers and depreciation schedules are not an asset. Rentals are shown as an operating expense in the income and expenditure statement and not as a current liability.
You have the option of upgrading the equipment before the end of the contract thereby providing the flexibility to change in line with modern technology.
Rentals may be escalated on an annual basis, thereby reducing initial costs, by linking rental payments to inflation.
Rentals provide an advantage to foreign owned companies, as rentals are not shown as a current liability but rather as an operating expense.

Finance Options

We give you

Finance Options

Advantages:

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