Rental & Finance Solutions
Tytec believe that Rental Finance is the most flexible and cost effective financial package available today. Globally, more and more businesses – from huge corporate to single office concerns – are moving away from unnecessary capital outlay and recognising the value of rental as a means of acquiring movable assets and capital equipment due to the flexibility thereof as well as incorporating technology refreshers which are so often required and needed by business.
The other advantages of rental are many and they will be discussed in our features and benefits chart on the next page, however the key factors are firstly; that rental does not require any capital outlay, therefore it has no impact on your cash flow and banking facilities, secondly; it is an “off balance sheet” expense, which has major tax benefits such as:
- The VAT on rental is raised on the monthly payment and not capitalised “up front”, as in instalment sales and leases.
- Rental is still accepted as an off balance sheet item for accounting purposes. This has a positive effect on balance sheet ratios and end of rental procedures. There is also a saving of costly administration as fixed asset registers and depreciation schedules are not affected.
- Does not usually require CAPEX budget.
We also provide a cash option as and when required.