/Rental_agreements/
Rental agreements provides clients with uninterrupted use of the equipment, rather than ownership of the equipment.
Features:
- Repayment periods range from 12 to 60 months for Tax-Based customers and companies
- Interest rates are either linked to Prime or fixed for a period
- VAT is NOT capitalised and does not form part of the original debt. VAT is paid on the value of the each month’s rental payment
- Residual Values (RV) may be negotiated and are subject to credit approval
- All equipment rented must be comprehensively insured during the term of the agreement
Benefits:
- Falls inside OPEX budgets of companies and not CAPEX budgets
- Clients are able to enjoy the usage of expensive equipment
- Ownership of the equipment does not pass to the Client at the end of the rental term.
- The repayment period can be structured to suit the needs of the Client
- Monthly payments are TAX deductible
Best Suited For:
- Businesses using equipment who don’t want a depreciating asset on their books
- Tax-Based clients
- Companies & Corporates