Belrex Finance provides financial services to all members of the Belrex Group and its clients. Belrex Finance specializes in providing rental finance solutions that are specifically structured to suit the unique requirements of our clients. Our clients include government, corporate, and small to medium enterprises in a variety of industry sectors. Belrex Finance has secured key strategic alliances with select service providers, enabling us to offer competitive service driven rental finance solutions. Some of the benefits of Belrex Finance Rental Agreements: - Paying a monthly rental does not reduce working capital thereby preserving cash reserves for investment and growth.
- Cash outflows are minimized and known.
- As a rental is considered an operational expense it may be tax deductible.
- V.A.T. is not payable upfront; rather it is paid on a monthly basis with each rental payment.
- Rental agreements facilitate regular equipment upgrades, as well as additions to existing equipment, enabling your business to reap the full benefit of technological advancement.
- With a rental agreement the equipment is not owned and as such there is no depreciation cost.
- As the equipment is not owned there is no need to record and maintain it on the asset register which translates to an administration cost saving.
- At the end of the rental period the equipment may be returned to us alleviating the need to dispose of obsolete equipment.
Equipment Value Equipment obsolescence and depreciation risk is carried by Belrex Finance. Flexibility Upgrades through Belrex Finance are available at any time during the rental period. Equipment Ownership Ownership and its associated risks lie with Belrex Finance. Ownership can be passed onto the customer at the end of the rental period. Cash flow Regular payments are made over the economic life of the equipment. Taxation Rental payments are fully tax deductible over the period of the rental term. Effect On Balance Sheet Belrex Finance rental is off balance sheet and recorded as an operating expense. Equipment Disposal Belrex Finance will dispose of all returned equipment in the correct manner. |