|
Cash Purchase |
Belrex Finance Rental |
Equipment
Value |
Any decrease in the value and functionality of
The equipment is for the owner’s account.
|
Equipment obsolescence and depreciation risk is
carried by Belrex Finance. |
Flexibility |
No upgrade facility in place.
|
Upgrades through Belrex Finance are available at any
time during the rental period.
|
Equipment
Ownership
|
Ownership and its associated risks lie with the
Owner |
Ownership and its associated risks lie with Belrex
Finance.
|
Cash flow |
The full purchase amount is paid in advance
and owner incurs financing / opportunity cost.
|
Regular payments are made over the economic
life of the equipment.
|
Taxation |
Owner may claim a tax allowance.
|
Rental payments are fully tax deductible over
the period of the rental term.
|
Effect On Balance Sheet |
Recorded as a non-income producing asset on
the balance sheet, thereby reducing the
owner’s measured return on assets
|
Belrex Finance rental is off balance sheet and recorded
as an operating expense.
|
Equipment
Disposal
|
Disposal of obsolete equipment in an
environmentally responsible manner is the
owner’s responsibility
|
Belrex Finance will dispose of all returned
Equipment in the correct manner.
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