Rent to Own / Operating Lease
Compared to buying and owning, renting gives you much more control over your changing needs. You have the flexibility to update to new equipment quickly and easily – even before the end of the rental term.
Unlike other rental products offered in the market, Finance Connections provide a clear end of term purchase options. Allowing you to take ownership of your equipment for one additional monthly payment.
Greater flexibility with financial certainty with no large upfront payment ensures you can change, upgrade, recapitalise and reinvest when you want to.
A rental facility can protect a client from being locked into owning equipment that may not meet their future needs.
An operating lease/rental is essentially an additional source of credit (unsecured), thus freeing up funds for money making ventures.
Tax deductible payments
As the equipment is to be used predominately for work purposes (even at home), your rental payments will be tax deductible, making it a very cost effective way to pay.
Your fixed rental payments are treated as an operating expense item and are easily managed on a month-to-month basis, making accounting simple.
There is no deposit required – you simply pay the first month’s rental, then you take the equipment away, you can spread the cost of the equipment over its productive life
Key features & benefits
- No up front deposit required- 100% of the equipment purchase price is financed
- Off balance sheet- The monthly payments are treated as an operating expense and are considered 100% tax deductible as long as the equipment is used for business purposes.
- Fixed payments easily managed on a month-to-month basis, making accounting simple
- Preservation of working capital
- Improved working capital, gearing and return on assets
- Flexible End of Term (EOT) Options…. It’s your choice
- At the end of the rental term the lessee will have three alternatives.
- Upgrade or replace with new equipment.
- Extend the rental period with reduced rental repayments.
- Purchase the equipment for one additional monthly payment (referred to as a purchase option agreement).