|
Avoid Obsolescence
By using our rental facility, you
will have an option included in your contract to add,
replace or upgrade your equipment with potentially no
increase in the rental cost. This provides significantly
more options as your company grows or technology changes.
Reduced Impact on Cash
By financing equipment via the
rental option, the cost of the equipment is spread over
several years removing the need to make a large capital
outlay as soon as the equipment is installed. This enables
the solution to ‘pay for itself’, and gives you the option
to choose a more suitable, higher cost solution with less
impact on your cash flow.
In addition, unlike most other
forms of payment, rental facilities attract VAT with each
repayment as opposed to requiring the VAT to be paid in
one lump sum, immediately. This further reduces the
initial impact on cash flow.
Rental repayments are classed as a
‘Revenue Expense’
Our rental contracts are worded so
that the repayments can be classed as a Revenue Expense
(subject to auditor approval). This not only provides a
potential acceleration of tax relief, but also removes the
need to capitalise the item, and borrowing, on the balance
sheet.
Fixed Repayments
Unlike a normal bank facility, the
repayments stated on a rental contract are fixed for the
duration of the contract. This enables a company to
precisely calculate its future budgeted costs.
Additional Credit Facility
The rental agreement falls outside
the customers existing lines of credit, leaving these
available for other uses.
Finance the whole solution
We can include all intangible
elements of a solution in the rental contract, such as
software, training and installation. In addition, we can
arrange software only finance.
No additional security required
The equipment is the only security
needed for a rental contract. Your collateral remains
untouched which means you can use your collateral against
future expansion or challenges facing your company.
Simple documentation
The rental contracts we provide
are simple and easy to understand. A standard contract is
just a single page, and can be e-mailed to you to avoid
any unnecessary delays. |
Techniques
for controlling IT assets and providing new technology at fixed
costs
