There are many good reasons to finance your business’s assets and equipment through a Fintech Rental Finance agreement, particularly when the assets and equipment depreciate in value, require significant capital or quickly become obsolete.
These are some of the important benefits of rental finance:
Often, high technology equipment quickly becomes outmode and obsolete, and can place your business at a significant disadvantage if you are saddled with ownership of such equipment. By procuring the equipment your business needs through a Fintech Rental Finance agreement, you enjoy a low entry-level cost, and you have the freedom to upgrade or change equipment whenever the need arises, without incurring a financial loss.
As a result of inflationary price increases, the cost of many high-end assets has risen virtually beyond ownership possibilities, placing essential equipment out of reach of many businesses. By structuring financing payments to accommodate your business’s budgetary and cost constraints, Fintech gives you access to the assets and equipment you may otherwise be unable to afford.
Because rental is an expense, it is 100% tax-deductible. Operating rental agreements generally do not require balance sheet disclosure, and hence will not affect the financial gearing of your business. In addition, it has a marginal impact on the return on assets managed ratio.
With a Fintech Rental Finance agreement you enjoy full flexibility when it comes to asset rental finance. We will structure an agreement to suit your business’s individual requirements in terms of repayment periods and structures, and contract periods can further be tailored to suit the useful life of user groups, asset types or individual pieces of equipment. We finance deals from R20,000 to multi-million Rand agreements, and provide you with the option to include insurance of the asset at very competitive rates.
Any credit lines your business has with other financial institutions remain unaffected by a Fintech Rental Finance agreement, because funds are raised through our own securitisation vehicles.
Choosing a Fintech Rental Finance agreement allows you to reinvest your capital into your core business to generate revenue, rather than leaving it tied up in depreciating assets. You don’t need to maintain an asset register or depreciation schedule, and your equipment life is no longer determined by depreciation periods.
In summary, a Fintech Rental Finance agreement gives your business access to the most up-to-date products, machinery and equipment without having to outlay capital every time you upgrade. Instead, you can minimise your cash outflow including VAT by paying monthly tax-deductible rental payments suited to your needs. This means you can reinvest your working capital and cash reserves into the growth of your business.