| Advantages of Rentals |
- Rentals are fully tax deductible, thereby minimizing income tax obligations.
- “Off Balance Sheet” rentals may be structured and shown as an operating expense, thus improving gear ratios and providing an added advantage to foreign owned companies as no note to the financial statement is required.
- Rentals avoid capital expenditure budgets.
- Monthly rentals can be reduced by the use of annual escalation of up to 15%, thereby easing the client’s immediate cash flow.
- The customer has the option to upgrade the equipment during the contract, should an upgraded new model be available, thereby providing flexibility to change as technology improves or as the company outgrows the equipment.
- Ax base structures can be arranged to accommodate transactions in excess of R1-million, the benefit would be passed to the client.
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