Rental Agreements
Rental Agreement are a form of lease generally used IT equipment and Photocopiers. This is a pure rental, where you pay over 2-5 years, quote often quarterly but monthly or even annual payments are allowed.
This is effectively a long term hire, you rent for the period and that's it. Title to the equipment normally passes to the supplier at the end of the contract, so they can then negotiate an upgrade, extension or removal of the item.
It is completely off balance sheet and rentals are fully tax deductible. VAT is charged on the payments
We can also use this type of agreement where a company wants an off balance sheet lease, but finding a buyer to satisfy operating lease conditions is difficult or impractical.
Rental agreement are very popular to those who require a non capital expenditure agreement (councils and quango's protecting capital expenditure budgets) or this wanting off balance sheet funding like foreign owned companies whose performance indicators are based on return on capital employed.
For more information and for specific quotations, please call. GO ON..........PUT US TO THE TEST TODAY!
