Technology is rapidly changing in the industrial world today, and user needs continue to grow. Keeping pace with technology, continually improving service to clients and improving operational efficiency has become a complex issue.
It is against this background that specialized financing has become more and more a factor of industrial and technological equipment usage. Existing methods of financing, although adequate, have not addressed the problems incurred in a continually changing market. In order to address these problems, the emphasis has changed from “What it would cost to buy” to “What it would cost to use?”
It was to answer this question that RENEWED was developed and introduced to the industrial and technological markets.
Traditional funding techniques increase your debt, tie up your lines of credit and are treated as capital expenses; furthermore, they leave your company with obsolete equipment at the end of the term. We provide multiple services across all asset types and are committed to delivering a totally professional service and developing customers for life.
When making equipment and technology acquisition decisions you must consider the following:
RENEWED is aimed at ensuring that clients are continually kept abreast of the latest financial developments in the industrial air supply market, and to address the individual needs of these clients. It is with this understanding of the industry that rental financing is offered on all sorts of equipment by RENEWED
Tailor-made packages are crafted depending on the client’s requirements to cater for cash flow and budget constraints, rent-free periods, residual values, bullet payments, etc. An overview of the major aspects of the rental concept is included for your perusal.
At the end of your rental term you have the following options:
RENEWED understands your need for flexibility, therefore, multiple payment options exist:
This can vary, but a five-year agreement is the norm – 12, 24, 36 & 48-month periods are also available.
Normally an escalation rate of approximately the expected rate of inflation is built into the rental structure in order to reduce the cost to the user of a particular system and has important ramifications. It takes into account that when considering future rentals, inflation will erode the value of money (the most expensive money is today’s money), thereby keeping the payments equal in real terms measured today.
As rental is an operating expense, it is not reflected on the balance sheet, rather it is shown as an operating expense in the income and expenditure statement.
The Rental concept allows the full use of the equipment, but does not confer right of ownership. A “Rental” may be defined as the uninterruptible use of equipment for a period of time at an acceptable cost to the user.
Through careful planning, our client can enjoy the full use of the equipment at the lowest cost possible. Our intention is to always provide the most cost efficient structure at the lowest possible rental.
Rentals are 100% tax deductible as an operating expense. The budget is therefore not affected by Capital Expenditure constraints and allows the user flexibility to upgrade within the rental period, or within a fiscal year.
Value Added Tax is not capitalised on the agreements but paid monthly on the rental. This provides valuable savings at the time of upgrade as VAT is only paid for the period the equipment is in use.
What you need: