Rent rather than Buy or Lease your Equipment

garage equipment rentalsIf you don’t want to go to the banks, for any reason, and don’t have the cash in your pocket, we now can provide you with an finance option for your new equipment. Very simply, as soon as our finance providers approve you, you’ll get all the equipment you have “purchased” and can start using it.

Of course, you’ll have to pay your monthly installments for the duration of the contract period that you signed with them. After the contract is expired you have an option to keep the equipment and close the contract or to upgrade your equipment with new one and extend the contract without the need to get approved by them again.

So, as long as your equipment is working for you it will pay for itself and bring you profit with minimum money outlay. All you need to do is complete the required documents and our financing providers will do the rest. Once approved, we will send you the equipment.

To name but a few benefits of rental option:

  • Rentals do FREE UP working capital for other investments – Allows you to rather invest your capital in stock – RENTALS require NO DEPOSIT.
  • VAT is paid on the monthly installments – and not up front. You therefore do not pay interest on the VAT amount as you would with a Lease option. Rentals are fully tax deductible from the annual Taxable profit.
  • Does not affect your bank borrowing power or affect your credit line facility – It is an “off balance sheet item”
  • Gives you the opportunity to reduce operating expenses by:
    • replacing over-aged equipment
    • no large capital outlay
    • facilitates the establishment of realistic replacement schedules
    • facilitates standardization
  • Monthly rental payments can be reduced by using the annual escalations of up to 15% – Allows you to start on initial low repayments and then increase the repayments as you business grows – total flexibility. Rentals are available from 12 months to 60 months.
  • Cost effectiveness – When comparing the cost of high technology equipment acquired on a rental to that of purchasing, the rental will provide a more cost effective option in Net Present Value after Tax when using the discounted cash flow technique, than that of a cash alternative.
  • Ease of upgrade / replacement. – Upgrading equipment on a leased / Installment sale involves cancellation, selling and possible settlement shortfalls. Upgrading of a rental allows for the goods to be replaced by simply signing a schedule to the existing agreement. It also allows for the transfer of the settlement balance shortfall to be amortized over the period.
  • End of Agreement options – In terms of the statutory requirements a rental agreement continues indefinitely, but has a minimum period as described. It is possible for the equipment rented to be acquired at a nominal cost.
  • Flexibility – Rentals can be structured to meet specific customer requirements.

workshop equipment rental vs lease vs cash