Why Rental

Rental payments are tax deductible and are treated as an operating expense, in other words it is off balance sheet. Cash purchases of assets must be capitalized and depreciated over prescribed periods.

The cost of these solutions are a passive asset meaning they don’t directly contribute to generating or influencing a company’s profit margin. If capitalised, a company’s profit margin and various other financial ratios are however directly and negatively affected of which the most sensitive one surely is dividends to the shareholder.

A rental solution allows customers to redirect their cash to income- generating assets, projects, property, etc. rather than assets that depreciate in value, whilst at the same time spreading the cost of the rented equipment over it’s useful life.

Our rental options allow for the added flexibility of component upgrades or changing only selected items during the term of a rental agreement without penalty.

Because we provide extended payment terms and an online asset monitoring and tracking web-site, it makes administration that much easier.

Deloitte & Touche have provided opinions to our customers on the benefits of their facilities inclusive of the possible future changes anticipated by the IASB standard to improve the accounting for lease contracts.