It is apparent that the use of a piece of equipment is far more important to the production of income than a piece of paper conveying title to the equipment. So why spend valuable capital on equipment that can be financed with affordable monthly payments?

Here are some important benefits of financing through Fintech:

• High technology equipment quickly becomes outmoded and obsolete. Financing this type of equipment offers a low entry-level cost. Financing through Fintech further provides the freedom to upgrade or change equipment when the need arises.
• Inflationary price increases have priced certain assets virtually beyond ownership possibilities. Fintech can structure financing payments to accommodate budgetary and cost constraints.
• Since rental is an expense, it is 100% tax deductible. Operating rental agreements often do not require balance sheet disclosure, and hence will not affect the financial gearing of the company. In addition, it will have a marginal impact on the return on assets managed ratio.
• Financing through Fintech gives the user flexibility. Agreements can be structured to best suit individual requirements in terms of repayment periods and repayment structures. Contract periods can further be tailored to suit the useful life of user groups, asset types or individual pieces of equipment.
• Credit lines with other financial institutions remain unaffected as funds are raised through Fintech’s own securitisation vehicles.
• Fintech finances deals from R20,000 to multi-million Rand agreements and provides the option to include insurance at very competitive rates.
   
• Further benefits are:

• Capital can be reinvested into core business to  
  generate revenue instead of being tied up in     
  depreciating assets.

• There is no longer a need to maintain an asset register or depreciation schedule.

• Equipment life is no longer determined by
  depreciation periods.

Additional benefits for equipment suppliers:

• Joint Venture agreements with right of first refusal.
• Promotion of vendor’s image.
• Marketing support to vendor.
• Relief from certain administrative responsibilities as Fintech provides value added services including insurance, maintenance and collections.
• Quick response on discounting from brokers.