Financial options

The financial options must take into account a number of parameters

  • the nature of the investment: the length of funding must reflect the length of use of the equipment
  • the type of equipment: investments in equipment and/or intangible property
  • the financial circumstances: economic conditions and the company’s accounting and tax position
  • financial packages offered by different financial institutions
  • additional costs following the investment: installation, maintenance and training costs

EQUIPMENT

CUSTOMERS

Each type of financing has its strenths and weaknesses.

Equity

PURCHASE

  • cost is spread over time
  • complete independence
  • ownership of the equipment
  • reduced cash outlay
  • asset depreciation
  • limited equipment upgrades
  • recycling of obsolete equipment at owner’s expense

Operational leasing

RENTING

  • fully financed and no advance VAT costs
  • simplified administration
  • easier cost control and budget forecasting
  • no capital assets (off balance-sheet)
  • cash-flow and borrowing capacity is maintained, allowing the business to invest in other projects
  • flexible and scalable solutions meaning equipment can be regularly renewed
  • minimizes the risk of products becoming outdated
  • outdated equipment is recycled
  • additional services (asset management, sales & rent back, insurance, structured packages to meet IAS and US GAPP requirements)
  • no option to buy
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Financial leasing

LEASING

  • no need to use equity funding
  • regular lease payments are tax-deductible
  • option to buy at the end of the term
  • rigid solution
  • more expensive than conventional financing
  • no additional services
  • no business expertise
Rentys remains confident that operational leasing is the best solution for equipment that rapidly becomes out of date and is the most flexible financial method to support your business development.