A rental agreement can overcome the large up-front capital investment required to update their business equipment. With a monthly payment schedule, a rental agreement overcomes large capital outlays and makes budgeting easier.
A rental agreement is off balance sheet funding, avoiding the equity accounting calculations applicable to other forms of financing. The tax benefits do not end there with rentals, as the monthly payments maybe tax deductible. If the asset is used solely for business purposes, these monthly payments may be tax deductible. Also, GST incurred through your payments can be claimed back on your BAS (Business Activity Statement).
A rental agreement is designed so you do no run the risk being stuck with old technology also at the end of the term there are numerous options available you can.
- Upgrade to new technology,
- Continue to rent on a month to month basis,
- Return the equipment with no residual obligation,
You can choose one or multiple equipment suppliers with the flexibility of a single contract or drawdown with a Master Rental Facility that works like a line of credit.
The options available and are designed to meet your business needs.