KEY FEATURES AND BENEFITS
Preserves cashflow – offers the obvious cashflow benefits of paying in instalments.
Initial deposits – can be as low as one monthly rental down with the VAT spread over the term of the agreement.
Competitively priced – the Funder or manufacturer takes the risk in the residual value of the equipment and factors this into the rental, bringing down the periodic cost to you.
Fixed maintenance contracts – can also be built in to the monthly rental
Tax efficient – the rentals can normally be offset against taxable profits
Asset normally treated as ‘off-balance sheet’ (subject to your auditors’ approval).
Flexible – at the end of the term, you can return the asset or extend the period. Either way, you do not carry the problem of disposal of the equipment.