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Financial Options

Funding need not be a major hurdle these days. As well as outright purchase, we offer both a Long Term Rental (Tax Operating Lease) and Lease-to-own facilities.
With the long term rental, it is not necessary to pay a deposit. You pay a set amount each month and have the option of painlessly upgrading and updating your equipment (generally the most favourable time is towards the end of the term). For businesses, these payments are usually 100% tax deductible. You can enjoy the benefits of compelling professional presentations at very reasonable cost and reap the obvious cash flow benefits. In many cases, depending on the value of your projector, the LTR cost for an entire month is less than a one-day casual rental!
With the Lease-To-Own (LTO) option, you pay a deposit up-front and then a set amount per month. You can't charge the whole amount against your tax as above, but you can claim the interest and depreciation against your tax. At the end of the period you own the equipment.

Long Term Rental (Tax Operating Lease)

The term must not exceed 75% of the asset’s useful life (as determined by IRD guidelines). The product is widely used to finance high depreciating assets, i.e. hi-tech/computer equipment.

  • Allows you to have immediate use of the asset without ownership
  • Predetermined operating cost
  • Avoids the risks associated with asset ownership
  • Fully tax deductible rentals
  • Enables a smooth monthly cashflow and more accurate budgeting
  • Reduced administration costs as there is no need to maintain depreciation schedules
  • Interest rate is fixed for the term of the lease
  • Cash reserves can be used for more profitable areas of the business
  • No capital outlay
  • Ability to upgrade regularly with replacements keeping up with the latest models
  • Avoid equipment obsolescence associated with asset ownership

Lease to Own (Hire Purchase)

With Hire Purchase your other credit arrangements remain unaffected. There is no need to tie up existing bank lines. Quick and easy to arrange, you get immediate use of the equipment, while freeing up cash reserves for more profitable investments. Normally you pay a deposit and the balance is repaid by regular monthly instalments over a specified period. During this time you enjoy the possession and use of the asset with title passing to you as soon as the asset is repaid in full.

  • Terms 12 - 60 months
  • Only security required is the asset being purchased
  • Depreciation and interest are tax deductible
  • Asset ownership to you on completion of the agreement
  • Stand alone transaction which is simple to arrange
  • Collateral security is not usually required
  • Interest rate is normally fixed for the term of the agreement
The advantages and disadvantages to each will only apply to each individual situation. If you are wondering which would be more beneficial, your company accountant or financial controller would be able to give you a better indication.