Rental Options

Qdata Solutions is able to offer its customers an individually-tailored Rental payment option for most medium to large capital investments. There are many benefits of renting your new equipment, as detailed below:

No Capital Outlay

A Rental option requires no initial capital expenditure. By conserving capital, a rental plan can enable funds to be better utilized in the running of the business and can also free up capital for other investment purposes. The rental option requires only a monthly outlay rather than a major dollar up-front outlay. It can also provide an extra source of credit without affecting existing lines of credit.

Ease of Budgeting

The budgeting process is also simplified as a rental plan guarantees a fixed payment amount over a known term.

Tax & Accounting Benefits

As long as the equipment is used for business purposes, tax deductions are available – under a Rental, the monthly instalments are tax deductible.

As rentals are treated as an operating expense, they may qualify as off balance sheet financing. This results in avoiding the equity accounting calculations that are applicable to other forms of finance.

Inflation Protection

If you chose to purchase the equipment, you would outlay the full cost at today’s dollar value. Over the life of the equipment, a portion of this cash outlay is “recovered” by depreciation, but, as a result of inflation, the amount recovered through depreciation is continually decreasing in value. This does not occur with fixed monthly rental payments which are always at the relevant “today’s” value over the plan term.

Growth Protection

As your business grows, you can expand/upgrade the equipment, and the rental agreement can be amended with appropriate adjustments in monthly payments for the balance of the term.

Flexible Options at End-of-Term

Subject to the terms & conditions of the rental agreement, at the end of the rental term you may choose from various options such as;

• Upgrade the equipment to the latest available technology.
• Extend the rental contract to rent the equipment at a discounted rate over a nominated term.
• Continue to rent the equipment on a month-by-month basis.
• Offer to purchase the equipment for fair market value.
• Return the equipment with no residual obligation.

Avoid Costs of Ownership / Disposal

The rental option allows you to acquire the equipment without incurring the costs of ownership, for example, as the finance company is the owner of the equipment, they assume the risk of obsolescence.