Equipment Leasing and Financing
- Leasing – monthly repayments for the termed agreement, after which the agreement is renewed, or the equipment is returned (long-term rental)
- Financing – monthly repayments for the termed agreement, after which the lessee owns the equipment
Equipment leasing and financing allow for an off-balance sheet purchase, but the VAT and tax can still be claimed. Terms of up to 5 years can be negotiated. AVT offers in-house finance andleasingfor audio visual and digital signage equipment.
The benefits include:
- Keep expenses as an OpEx as opposed to reassigning to CapEx.
- Lower cost of funds (Rates often less than Prime)
- No capital required
- Non-recourse residual
- Operating lease, thus all repayments are 100% fully tax deductible
- True off balance sheet transaction (IAS17 / AC 105) compliant
- Improved ratio’s (ROI & ROA)
- Because of fixed rate, IT spending can be accurately predicted
- No Hidden costs
- Boardroom Automation and Control System Solutions
The leasing option offers an easy way to access audio visual and digital signage technologies without the capital expense.
The pricing is based on an option of from 1 to 3 year contract. The benefits include:
- Keep expenses as an OpEx as opposed to reassigning to CapEx
- No downtime – no warranty issues
- Never need to upgrade due to technology change
- Easy paper work