Why Rent
Save Money, Keep pace with tech
Why Rent Technology Equipment?
The maths is simple
You either spend Rs. 25,000 on a typical technology purchase today, or elect to pay a little over Rs. 800- 1000 a month and use the money you have saved to better use in your business.
Save your money
Keep your cash in your business to put to better use. Do not lock in your funds to purchase rapidly depreciating technology products.
Improve your cash flow
Renting allows you to free up your critical monetary resources that could be better utilized to meet other requirements, which are of higher priority.
It is easy to rent than to buy
Before extending a capital equipment loan, banks will usually want to see two to three years of financial records which most new companies do not have. We usually evaluate the project for which the equipment is going to be used and understand the cash flow generated from the project.
Keep pace with technology
You can get all the equipment you really need, not just what you think you can afford. Better & Latest technology not only dose it create a better processional image for you, but it also boosts the morale and productivity of the employee; and this would translate into better results for the company as a whole.
Save your money Rental has balance sheet benefits
By renting technology equipments you would be able to exclude some rented assets and related obligations from your balance sheet. Such moves could improve financial indicators such as your firm’s debt-to-equity ratio or earnings-to-fixed-assets ratio. Bear in mind, however, that accounting rules do require your balance sheet to report assets rented under certain types of agreements.
Improve ROA/ROE
Many companies place a heavy emphasis on ROA and ROE for evaluating profitability and performance. Operating rent contracts often have a positive effect on ROA and ROE. In many cases, this is also true for companies that rate performance on the basis of EVA/SVA.
Spread the cost
Affordable monthly payments spread the cost of your equipment over its useful life. You can choose from a flexible rental plan over 1, 2, 3 or 4 years.
Easy accounting
As your monthly rental payments are an off balance sheet expense it makes accounting far simpler. There is no asset to depreciate or liability to account for, just a monthly expense that may be fully tax deductible. Ask your accountant or tax advisor how renting can work for you.
Easy end of term options
At the end of the term you have the option to choose what you want to do with the equipment:
- Keep on renting the same equipment (often at a reduced rate)
- Return the equipment back to us