|
Leasing & Hire
Do your business a favour. Don't Buy
- If you're buying capital equipment or machinery, paying upfront can put a serious dent in your cash reserves. And what are you left with in five years? Usually a seriously depreciated asset that isn't much use any more.
- When compared to buying equipment outright, leasing helps preserve cash for projects and expenditure that offer better business returns or represent a more efficient use of capital and resources.
- When it comes to expenditure, businesses should invest as little as possible in depreciating assets and as much as possible in appreciating assets. Renting provides a compelling option to keep the cost of depreciating assets down and pass obsolescence risk to a third party.
- A common financial methodology for deciding if taking an asset on rental is more economic than buying is to compare and select the lowest net present value of the after tax cash flows of each alternative.
Off Balance Sheet Funding
- In most cases, rental payments don't appear as balance sheet liabilities. The monthly rentals are treated as an operating expense and are generally considered 100% tax deductible. Not only that, as an expense item, these payments may fall outside of annual capital budget allocations and the arrangement may result in improved balance sheet ratios. Naturally, you should check with your accountant or legal advisor first.
Rent the Full Package
- You can bundle the cost of all ancillary equipment into your rental or lease. Pumps, meters, electronic tank gauging, electronic fluids management systems, in fact all Transtainer accessory lines can be included in the one transaction.
Cash is still King
- When you rent or lease your equipment you get to keep your cash for better things. It takes the strain off your cash flow and when working with your accountant or legal advisor, usually results in a 100% tax break and a healthier balance sheet. Better still, it means you don't have to compromise on quality You can afford the right equipment for the job.
We Take the Residual Value Risk
- Transtainer rental pricing builds the future expected resale value of assets into the pricing to keep your rental payments low.
- The future resale value risk is assumed by the Transtainer, not the you. What's more the costs of disposing of the asset at the end of the lease including environmentally friendly recycling of the assets (including potentially hazardous components) is also assumed by Transtainer.
|
|