Rental
Benefits to Customers
Fixed
term provides both operational and financial benefits including:-
1.
Long Term Rental covers the total cost of all future maintenance and
repairs over the life of the contract, (excepting
accident damage, misuse and abuse)
and provides relief equipment in the event of a major breakdown.
2. Rental
payments are made from pre tax income - alternatively outright purchase
is funded from:
a. Shareholders funds
b. Loan Capital
c. Accumulated Profits tax
paid.
Rented
equipment can be funded from cash flow generated from the earnings
it helps produce.
3. Ownership
contributes nothing to operating profit and rarely contributes to
capital gain which is taxable.
As
rental reduces assets, your return on investment improves, i.e. Use,
not ownership, creates profits. Rental enables
conservation of capital for other core
business.
4. Rental
(operating leases) is not required to be shown as a liability in company
financial statements.
5. Preservation
of working capital for your core business.
Improved return of investment.
Greater budgeting control.
Less management and administration
involvement.
Flexibility to meet changing needs.
Increased productivity.
Friendly and efficient service.
• Sales • Hire • Service
• Parts • Quality Late Model Units
Available •
