Client benefits
How a lease can help you
Most people think of a lease as a typical loan with out understanding the many ways in which it can actually improve your financial position. The decision to take out an operating lease should be based on understanding how it can work in your favour.
SOME BENEFITS OF AN OPERAING LEASE TO CLIENTS ARE. . .
Payments are 100% Tax Deductible
The entire rental payment is an operating expense and hence a claimable tax deduction.
Better Cash flow Management
As payments are fixed throughout the term of the contract, forecasting of cash flow is made easy. Your capital is preserved for other purposes.
No Technology Obsolescence
As there are no ownership implications, you are not left holding an obsolete asset.
Bundle software, service and maintenance in one monthly payment
Most financiers are reluctant to finance anything other than hardware. Rent Lease Group can facilitate the financing of your total solution with one repayment.
Capital Budget Approvals not required
As the payments do not touch your balance sheet, cumbersome capital justifications are not required.
Customise Payment Structures to Match Your Cash flow
Payment streams can be structured to match your cash flow position.
Examples of options available include:
Quarterly, Half Yearly & Yearly options
No payments for first 6 months
Pay 10 months of the year
Reduced payments in the first year
*All these options are subject to credit assessment.
Upgrade Options
Throughout the term of the contract or at term end you can:
Add equipment
Take equipment off
Replace equipment
Avoid the Burden of Disposing Assets
In addition to the costs associated with asset disposal, there are also increased pressures to dispose of assets in an environmentally compliant manner. Operational leases or rentals puts this burden is back on the finance company as opposed to the Renter.
*Please seek independent tax and accounting advice prior to entering any finance arrangement. If you would like more information please call 1300 309 806 (Australia) or click here to have a representative contact you as soon as possible.