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The majority of sales by CompuCam are rentals, rather than outright purchase. Our Concept of 'RENT-TO-OWN' is extremely popular with our clients simply because it does make very good financial sense. Why reduce your cash reserves when you can make small, easy, off-balance sheet monthly payments? Talk to us at CompuCam about monthly payments as opposed to a cash purchase - you'll be pleasantly surprised.
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BENEFITS OF RENTAL
The computer and CCTV market is a rapidly changing market in the world today. Historically, user needs continue growing. Keeping pace with technology, continually improving service to clients and improving operational efficiency has become a complex issue.
It is against this background that specialized financing has become more and more a factor of computer and CCTV usage. Existing methods of financing do not address the problems incurred in a continually changing market. In order to address these problems, the emphasis has changed to "What it would cost to use?" a computer or CCTV system.
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It was to answer these questions that RENTAL FINANCING was developed and introduced to the computer and CCTV market. Rental financing is aimed specifically at the computer and high technology market and caters for change over a period. It is therefore possible for a user to expand their systems, and to do so without drastically affecting their budgets and cash flow.
Although flexibility is of major importance in any computer or CCTV installation, the rental package has further been designed to offer the greatest possible tax advantages, as well as to cater for inflation. Structured financing allows savings in today's money (the most expensive) and then allows inflation to erode the value of money over a period of time. This is not only more economically viable, but also improves returns on investment of the computer and CCTV system itself.
The financing policy is to ensure that clients are continually kept abreast of the latest technical developments in the computer and CCTV market, and to address the individual needs of these clients. It is with this understanding of the industry that rental financing is offered on all computer and CCTV systems by Compucam.
Tailor-made financing packages are created depending on the client's requirements to cater for cash flow and budget constraints, rent free periods, residual values, bullet payments, etc.
The following are the salient features of a Rental Agreement:
1. Use and Enjoyment
The Rental concept allows the full use of the equipment, but does not confer right of ownership. A "Rental" may be defined as the uninterrupted use of equipment for a period of time at an acceptable cost to the user.
2. Tax Benefits
Rentals are 100% tax deductible as an operating expense. The budget is therefore not affected by Capital Expenditure constraints and allows the user flexibility to upgrade within the rental period, or within a fiscal year. Value Added Tax is not capitalized on the agreements but paid monthly on a rental. This provides valuable savings at the time of upgrading as Vat is only paid for the period the equipment is in use.
3. Terms
This can vary, but a five-year agreement is the norm.
4. Accounting
As a rental is an operating expense, it is not reflected on the balance sheet in any way. Rather it is shown as an operating expense in the income and expenditure statement. The equipment is not shown on the balance sheet as an asset or a liability as ownership will only be transferred to the user at the end of the rental period.
5. Rent-to-own
Compucam offer our clients the option of taking ownership of the rental equipment at the end of the rental terms for a small fee which is negotiable.
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