With the speed at which technology changes these days, companies are finding the need to upgrade their business equipment is happening more regularly, which can lead to worries about capital expenditure and obsolescence.
Alliance Equipment Finance are pleased to be able to offer their Alliance Equipment Finance Rental Agreement as a solution to this problem.
Choosing to enter an Alliance Equipment Finance Rental Agreement provides a cost effective solution to financing the next photocopier, phone system, or computer for instance.
These equipment rental agreements can help overcome the large up-front capital investment required to update business equipment, and with a monthly payment schedule budgeting is made easier.
Furthermore, a equipment rental agreement from Alliance Equipment Finance may count as off balance sheet financing, thus avoiding the equity accounting calculations applicable to other forms of financing.
The tax benefits do not end there however, if the asset is used solely for business purposes, these monthly payments may be tax deductible. Also, GST incurred through monthly payments can be recorded on the Business Activity Statement.
There is also no risk of being stuck with old technology at the end of the term either as there are a number of options available designed to meet the needs of the business, such as:
- upgrading to newer technology
- extending the contract to rent the equipment at a discounted rate for a nominated term
- continuing to rent on a month to month basis; or
- returning the equipment with no residual obligation.