Contact us: email@example.com
Advantages to the Customer
Introducing the Concept of Rental
• The basis of any operating lease is a rental agreement where the renter pays periodic rentals for the use of assets.
• Rentals are based on the reducing value of the asset throughout the term of the agreement.
• Ownership rests with the lessor throughout.
• No bargain purchase option or residual commitment is negotiated at the time of inception of lease.
• Operating leases must meet the criteria specified by prevalent accounting standards of the country.
Companies benefit by using technology, not owning it
To keep the competitive edge, businesses must continually invest in technology.
• Often, vast amounts of unutilised equipment is taking up valuable space at a high cost to company.
• In today’s fast-moving business environment, companies are finding it increasingly challenging to keep up with an even
faster pace of technology advancements as IT hardware manufacturers and software developers continuously introduce
new and better equipment to make users more productive.
• The useful lifespan of IT equipment has been steadily declining. This is coupled with continuing drops in acquisition costs
– because what you pay for today is worth less tomorrow, never mind in a couple of years’ time.
Advantages of Rental to the Customer
• Conserve Cash, pay for equipment over time
• Predict technology spend
• Reduce ongoing paperwork by entering into a Master Rental Agreement
• Stay ahead of the technology curve, by upgrading more frequently and eliminate the risk of technology obsolescence
• Contract flexibility
• Enhance management efficiency
• Flexible end of term options
• Reduce technology costs , cost of ownership and disposal is avoided
• Off balance sheet reporting, therefore more liquid financials
• Internal cost controls, cost centres can be billed separately
• Rental payment is fully tax deductible