• May escalate installments to suite client.
  • VAT payable monthly and is regarded as Input Vat and written off against any output Vat collected.
  • Interest calculated on cash price before VAT.
  • The full rental is 100% tax deductible monthly.
  • No Capex approval required.
  • Off-Balance Sheet. Operating expense in the income statement. No claiming of wear-and-tear allowances (depreciation).
  • Interest rate not disclosed.
  • No deposit is necessary.
  • Does not affect ‘equity ratio’, ‘current ratio’ and ‘return on assets ratio’ on financial ratio analysis.
  • Option to upgrade equipment is available.
  • Off balance sheet accounting and reporting.
  • Cash flow predictability through fixed payments.
  • Goods can be returned for exchange and  their value extended into the future.
  • Rentals are tax deductible.
  • V.A.T. is payable and claimed per rental.
  • No upfront major cash outlay.
  • All equipment and intangibles through a single monthly payment.
  • Simple terms and equipment schedules.
  • Upgrade to suit the useful life of technology.
  • Right to exchange portion of installed products during contract term, without penalty.
  • Financial advantages of rental in Capital and accounting reporting terms.