Do you want to keep your costs down and your business up to date? Then IT Rental may be an option to consider.
So what is IT Rental?
A finance agreement that can help you keep your business technology up to date with the equipment you need. You choose the equipment for your company, then your bank purchases the equipment and rents it to you. Like any other lease, the bank is the owner of the equipment and rents it to you for a fixed time with fixed rental payments. At the end of the term, you can choose to return the equipment to the bank, upgrade to new equipment, extend the term of the lease or make an offer to purchase the equipment ( any offer to purchase will be considered on its merits).
So what are the benefits to IT Rental?
- Security is usually the asset itself – preserving access to working capital credit lines.
- Keeping your business up-to-date – renting allows you to regularly make use of the latest technology and most efficient IT equipment to meet your changing business needs.
- No capital outlay – no up front deposit needed, which means you can use your working capital for other core business needs.
- Get the real value out of your equipment – leasing terms are structured to allow for the residual value at the end of the term to reflect the equipment’s expected useful life.
- Tax deductible – generally the rental is deductible to the extent the asset is used in your business.
- End of term value is attributed to the asset – thus reducing the cash flow impost (as opposed to standard banking lines).
- Tailoring to match your cash flow – rental cycles aligned with your anticipated cash flow.
- Simplicity – rentals will be automatically debited from your nominated business account.
- Convenience – a cradle to the grave full service technology solution from procurement through to disposal.
What are the features?
- Fixed interest rates for the life of the contract.
- Choice of rental payment options
- Controlled equipment disposal at lease end.
- Option to engage your banks Asset Management Services (equipment tracking and replacement).
- The bank owns the asset and leases it to you.
Important Facts* (Information provided by National Australia Bank)
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Interest rate: |
Available on application. |
Interest type: |
Fixed |
Minimum term: |
12 months |
Maximum term: |
36 months. Other terms can be considered on application. |
Minimum amount: |
Greater than $20,000 is preferred. |
Maximum amount: |
Unlimited |
Payment options: |
Monthly, quarterly, half-yearly, annually, in arrears, in advance, or to match any seasonally-driven cash flow need. |
Security Required: |
Generally the security is the asset itself. A director’s guarantee and indemnity may also be taken as supporting security. Additional security might also be required – this will be assessed on your application. |
Ownership: |
The bank owns the asset and leases it to you. |
Related options: |
Finance Lease |
What it costs: |
Fees and charges are payable. You will need to request specific details from your bank or finance broker. |
Terms and Conditions: |
- 100% finance is mandatory.
- Proceeds of trade-ins and/or deposits must not be used as equity.
- Your ownership of the goods at the expiry of the lease contract is not guaranteed.
Other Terms and Conditions apply. Request full details from your bank or finance broker. Credit approval and asset eligibility criteria apply. |
Where to from here?
The information for this article has been provided by NAB. For further information on how you can secure business financing for your business, please contact Andrew Halsey, Business Relationship Manager, Telephone: 08 9333 4147 and mention that you were referred by Innova Business.
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