OPERATING LEASE (RENTAL)

Is buying out of date?

New equipment can have a short life span, but a large impact on your cash flow. It may be wise to consider your options before you purchase new goods. By renting, you can have the latest technology now and up-date when you need to. There are no residuals to pay. No capital outlay. No disposal problems at the end of the agreement.

What can be rented?

Virtually any income producing equipment is rentable through Finance Qld and our associated lenders. Computers, photocopiers, surgery equipment, phone systems, forklifts, including attachments to heavy equipment such as a new bucket on an excavator.

How does it work?

You just choose the equipment you want to rent, the lender will buy the goods and rent them to you with fixed payments over a fixed term. With fixed rentals structured around your business and over a known period it's easier to forecast your expenses. By treating your rental amounts as an operating expense it means that the rental agreement doesn't appear on the balance sheet as a liability. Bank credit facilities can be preserved for other requirements. Best of all, if the equipment is used solely for business purposes, your rental amounts can be treated as an operating expense and may be 100% tax deductible. Check with your accountant to see if you qualify.

Upgrading to the latest equipment rental offers you flexibility factors that no other facility can. You can upgrade and add to your equipment at any time during the contract period. When the term is up your four options are:

• Continue to rent the equipment at a reduced amount
• Upgrade to new technology
• Offer to buy the equipment at fair market value
• Return the equipment in working order

For more details contact us