Equipment Finance
At Dreymar, we understand that at times - cash flow can be tight.
This why we offer outright purchase and rent-to-own options on almost all of our products.
What is an Operating Rental?
An Operating Rental offers a cost-effective solution that allows you to use assets without the need for an upfront purchase. By opting for this arrangement, businesses can conserve their cash flow for more urgent working capital needs.
Why Choose an Operating Rental?
Here are some key reasons to consider an Operating Rental for your business:
- Flexible Payment Plans: Tailor your payment plan to match your company’s cash flow, ensuring that payments align with your financial capabilities.
- Simplified Administration: Eliminate the need for managing complex fixed asset registers and depreciation schedules.
- Reduced Long-term Borrowing: Rentals are recorded as an operating expense on your income statement, not as a liability on your balance sheet.
- VAT Reclaim: Claim VAT on monthly rental payments, offering additional financial relief.
Key Benefits
The Operating Rental model offers significant advantages, including:
- Tax Deductibility: Rentals are 100% tax deductible, reducing your taxable income.
- Monthly VAT Payments: VAT is not capitalized upfront but is spread out, making it easier to manage your finances.
- No Deposit: Start using assets with zero deposit, helping to minimize initial capital outlay.
- Credit Facility Preservation: With Centrafin (Pty) Ltd, you can access rental financing without impacting your credit line with the bank.
- Off-Balance Sheet Financing: Rentals are shown as operating expenses, ensuring they don’t appear on your balance sheet.
- Escalation Options: Opt for escalation options to lower monthly rentals, easing short-term cash flow demands.
For more information on how our Operating Rental solutions can benefit your business, contact us today!