Ten Reasons to Lease/Rent…

1 – Simplicity and Convenience
2 – Preserving Liquidity
3 – Cash Flow Management
4 – Lower Total Costs of Acquisition
5 – Accounting Benefits
6 – Tax Benefits
7 – Outsourcing the Asset Management Headaches
8 – Tracking Total Cost of Ownership
9 – Capital Injection without raising debt – Sale and Lease Back
10 – We make renting easier
Cash Purchase Rental
Equipment Value The owner must accept any decrease in the value of the equipment. All risk associated with equipment obsolescence and depreciation lies with the rental company.
Disposal of Equipment The owner is responsible for the disposal of the equipment which has associated costs. The rental company is responsible for the disposal of the equipment that is returned.
Ownership All aspects of, and risks associated with ownership lie with the organisation. All of the risks of ownership lie with the rental company, not the user.
Payments Payment in advance. Payments are fixed and spread over the useful life of the equipment.
Taxation Owner may claim a tax deduction. Rental Payments are fully tax deductible over the period of the rental term.
Effect On Balance Sheet Appears as an asset on the balance sheet. Off balance sheet and is seen as an operational expense.
Flexibility No upgrade facility in place. An upgrade facility is available at any time during the rental period.