Rentals

What if?

  • Unexpected breakdowns cripple your cash flow?
  • Your air compressor fails just out of warranty?
  • Service costs drastically increase?
  • In four years an overhaul cost is R 80,000.00 to R 120,000.00?

 

We offer an “Air Over the Fence (AOF)” facility whereby, for a pre-determined fixed monthly premium, compressed air will be supplied to your facility at no further cost for the duration of the contract.

 

Advantages of Generator Rental Services Finance

  • All maintenance / consumables are calculated at today’s Rand / Dollar exchange, therefore eliminating uncontrollable inflation.

     

  • The upgrade option gives your company the ability to upgrade the equipment at any stage of the rental agreement, which will enable you to keep up-to-date with the latest technology and thus the changing needs and requirements of your organisation.

     

  • Approvals of capital expenditure budgets are avoided and capital outlays as well as working capitals are reduced, as no deposit is required. 

     

  • A rental is considered as an operation expense and therefore has the following advantages:

     

    • There is an income tax advantage in that all monthly payments are fully tax deductible.

       

    • The rental transaction is not reflected on the balance sheet as an asset or liability and as a result will not affect your organizations gearing and would be a positive on your financial ratios.

       

    • The recording procedures for accounting purposes are simplified as monthly rentals and reflected as a monthly expense on the income statement and no further entries are required.

       

    • Significant savings in VAT are achieved as VAT is paid monthly with each rental. In turn, the 14% VAT on the rental is regarded as an input tax and may be written off against any output tax collected.

       

    • The flexible nature of rental agreements allows for provisions such as insurance and maintenance to be included within the monthly payments.
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