Rental scheme
Rental Scheme
We have put together a new innovative rental option for bulk purchases of our equipment such as plastic pallets, pallet boxes, poly crates, storage crates and containers. We recognise that even more so in current times that before the need to use capital and make investment prudently and wisely is required. To that end we have a new rental option that allows our products to be rented over a fixed term rather than purchased outright.
This allows us to provide our customers with maximum flexibility when it comes to supporting their business requirements, they need replacement or new equipment for their operation or supply chain. Within the contact e can build in expected levels of loss or damage cover and replacements plus we can add on additional services such as washing, preparing or refurbishment which will cover and mitigate risk to the user.
Advantages for you
Improvements in Cash Flow:
Rather than expensive upfront Capital outlays associated with a Capital purchase; you can pay for the product over the life of the asset. Therefore, the cash flow is improved and cash is retained to fund appreciating assets in your business.
Financial benefits
Off Balance Sheet Accounting:
Because you never own the asset, you will not need to contend with the costs of depreciation and the effect on the balance sheet. You do not deal with the disadvantages of owning a depreciating asset such as writing down an asset before funding a new acquisition, effect on balance sheet, significant capital outlay.
Simplified Acquisition of Future Products:
Very easy to modify contract with asset upgrades therefore makes the acquisition of future products simple. E.g. if a 3-year contract, after 2-years you can upgrade contract to reflect latest products.
Simplified Acquisition of Future Products:
Very easy to modify contract with asset upgrades therefore makes the acquisition of future products simple. E.g. if a 3-year contract, after 2-years you can upgrade contract to reflect latest products.
Simplified Budget Planning and Decision-Making:
Because the Rental Amount is the same for each period, this amount can be encapsulated in the Department Operating budget in a simple manner as a revenue expense item. Typically, a Capital purchase requires the signature of a Director or Board whereas rental would normally be the domain of a department manager.
You Can 100% Offset Rental Payments Against Corporation Tax:
Rental is treated as an expense and appears on the P&L Statement.
Simple Administration and a Single Contract/Payment:
Rental Example:
In this scenario the user require 250 of our Alpha Polycrates
Outright Purchase
Unit Price (ex VAT) £184.75
Total (ex VAT) £46,187.50
| Term | Payable | Deposit | Rental |
|---|---|---|---|
| 1 Years | Monthy | 1 Month | £4,203.06 |
| 2 Years | £2,152.80 | ||
| 3 Years | £1,498.32 |
Flexible Funding Solutions:
With our partners, we are specialist in creating flexible funding solutions for you the end user, e.g. rental holidays, in arrears payments, services/maintenance agreements etc.