Rent, rather than Buy. Why it makes sense.
Up to now, most Estate agents would simply purchase their operating equipment (laptops, computers, printers, telephony etc) outright or apply for finance. Now, in conjunction with The Rental Company, the AIEA is pleased to offer it members the smarter choice. Rent rather than buy!
- Rentals can be tailored to your individual needs. We can use annual escalation in line with inflation and reduce the initial rentals.
- Rentals are 100% tax deductible.
- You will be entitled to deduct VAT paid from VAT collected, which will result in a major saving.
- As rentals are an operating expense and not a capital expense, they are not governed by capital expenditure budgets.
- Software can be included on rentals but not on a lease.
- Further on-going sales are secured by the inclusion of a simple upgrade option free of additional VAT on the original equipment.
- No deposit is required on a rental agreement.
- As rentals are totally off balance sheet – your equity , current and return on assets ratios are improved and unlike a lease do not have to be capitalised.
Sadly it’s not all good news though. Certain qualifying criteria apply. You will need to have traded for at least 2 years and be a registered business entity. To help explain the differences and benefits between cash, lease and rental, The Rental Company have been kind enough to provide us with the table below. Read through it and we are certain you will come to the same conclusion, Renting makes sense.
Please refer to the website link below for the table;
http://aiea.co.za/the-benefits-of-asset-finance/
If your business qualifies and you’re planning to purchase in new equipment in the next few months, why not get in touch with us and see why we go that extra mile for our members. Click on the link below and call us from the number or use the form to request a callback.
