Rentable Assets

 

 

Concept

Generally, the purchase of expensive equipment, furniture, fixtures and fittings and vehicles is most efficiently funded through some form of asset finance.

Rental agreements provide the customer with uninterrupted use, rather than ownership, of the goods, i.e. the customer has the option to take ownership or to return the goods to the bank at the end of the agreed period, subject to the conditions of the agreement. It provides for negotiated periods at an agreed interest rate with agreed monthly rentals (payments).

Rental Agreements are suitable for:

• Businesses using goods with either a high obsolescence or which are replaced on a regular basis, e.g. computer equipment.
• Businesses whose primary needs are for the use of the goods rather than ownership, e.g. photocopiers and fax machines.

Harnessing Selacor Group expertise, as well as many years in the financing industry, one rental contract can cover:

• The hardware component
• The software component (in certain instances, software purchases can be 100% financed)
• The cabling component
• The installation component
• The training component
• The settling component (where existing assets are being upgraded)

Additional services include ‘sell and lease back’. Should a client have an asset, or suite of assets, which have already been paid for, but it would like to convert to a rental agreement, and so free up cash, Selafin can make for provision for it.

Main Features

• Structured Payment Options.
• Repayment periods up to 60 months.
• No deposit.
• Interest rates are linked to Prime, or fixed for the period.
• Residual Values may be negotiated to avoid having to pay the full amount over the agreed period.
• All goods rented must be comprehensively insured during the term of the agreement.

Main Benefits

• Customers are able to enjoy the use of expensive equipment without any initial capital layout.
• Ownership of the goods does not pass to the Hirer when the last payment is made. This may however be negotiated at or before that event occurring.
• The customer gets the benefit of any resale value if he/she exercises the ownership option.
• Monthly rentals are 100% tax deductable.
• Upgrade of the equipment during the life of the agreement.