Turnstar offers a rental and maintenance service on all our products installed across South Africa.
A rental agreement offers a number of advantages over a cash purchase. A list detailing the different benefits follows below.
|Ownership of the asset vests with the rentor at all times.
|Rental payments are paid out of a company’s operating budget (OPEX). An operating expense entails days/weeks for approval. Capital expenditure (CAPEX) budget are only approved annually.
|Renting allows for the upgrading, either by replacement or addition at any stage of the rental agreement without impacting on a company’s cash reserves
|Value added tax (VAT)
|VAT on a rental is deemed an input tax and may be offset against any output tax collected
|The asset need not be capitalised in the balance sheet and depreciated. Liquidity, profitability and solvency ratios are improved
|Existing lines of credit are not utilised or affected.
Please contact a sales representative in order to discuss your requirements.