Network Rental Services
Why Customer choose the rental/lease option
There are many reasons customers use the rental option rather than outright purchase for equipment and software.
Avoid Obsolescence
By using our rental facility, you will have an option included in your contract to add, replace or upgrade your equipment with potentially no increase in the rental cost. This provides significantly more options as your company grows or technology changes.
Reduced Impact on Cash
By financing equipment via the rental option, the cost of the equipment is spread over several years removing the need to make a large capital outlay as soon as the equipment is installed. This enables the solution to pay for itself, and gives you the option to choose a more suitable, higher cost solution with less impact on your cash flow.
In addition, unlike most other forms of payment, rental facilities attract VAT with each repayment as opposed to requiring the VAT to be paid in one lump sum, immediately. This further reduces the initial impact on cash flow.
Revenue NOT Capital Expense
Our rental contracts are worded so that the repayments can be classed as a Revenue Expense (subject to auditor approval). This not only provides a potential acceleration of tax relief, but also removes the need to capitalise the item, and borrowing, on the balance sheet.
Fixed Repayments
Unlike a normal bank facility, the repayments stated on a rental contract are fixed for the duration of the contract. This enables a company to precisely calculate its future budgeted costs.
Additional Credit Facility
The rental agreement falls outside the customers existing lines of credit, leaving these available for other uses.
Finance the whole solution
We can include all intangible elements of a solution in the rental contract, such as software, training and installation. In addition, we can arrange software only finance.
No additional security required
The equipment is the only security needed for a rental contract. Your collateral remains untouched which means you can use your collateral against future expansion or challenges facing your company.
Simple documentation
The rental contracts we provide are simple and easy to understand. A standard contract is just a single page, and can be e-mailed to you to avoid any unnecessary delays.
Advantex Network Solutions - The IP Infrastructure Specialists
Connect…Communicate…Control
