OPERATING RENTAL

A PV SOLAR FINANCING MODEL

Operating rental has played an important role within the asset finance market and will continue to do so. The ability to invest in new assets, with reduced rental cost and replace with new, at a chosen time in the asset's life cycle, provides flexibility to businesses.

You no longer need to purchase a blanket of brand new technology, or pay large sums of cash up front, we will consult, procure, deploy, maintain and dispose of the solution for you.

Our rental solutions allow customers to redirect their capital towards investment in assets rather than technology that rapidly drops in value, while at the same time spreading the cost of the technology over its useful life.

Through our superior products and services, built on our core values, our clients are free to focus on their core businesses.

operating-rental-finance-for-pv-solar-systems-commercial-industrial

HOW DO YOU BENEFIT?

Preserve cost, increase your buying power
Stretch your budget and increase your buying power: By reducing your technology purchase to a simple periodic payment you've leveraged up the buying power of your operating or capital budgets.

Embracing technology to "jump the curve"
Companies benefit by using the latest technology, not owning it. Reduce the risk of being bound to obsolete technology with the option to upgrade your equipment after 5 years.

Put off the taxman until another day
With our rental solutions, you spread out your VAT payments over the term of the technology Rental. Consult your tax advisor to find out how Renting can benefit the tax position of your business.

Match revenue with expenditures
Our rental solutions allow you to better match your revenue with your expenses by paying for the solution while it is used to generate income or protect profits.

Eliminate maintenance worries
Ageing equipment can break down, costing you a lot not only for the repairs but in the disruption to your operations. Asset Rentals Solutions and its partner is responsible for maintaining the technology, removing this burden from your staff.

Avoid the cost and uncertainty of selling used equipment
The amount of effort it takes to manage selling used technology and the uncertainty in future technology values makes it very difficult for most companies to manage. We maximize the proceeds from used technology, saving you from worrying about and bearing the burden of a drop in technology values.

Avoid environmental issues
When you buy technology, usually the last thing on your mind is dealing with complicated environmental regulations when you are ready to dispose of that technology many years into the future. With our rental solutions, we will safely take care of the disposal for you.

Customized rental solutions, flexible billing terms
We offer customized rental models with innovative payment structures.

Off-balance sheet expenditures
Depending on company accounting method, our rentals can be booked as a rent expense on your income statement.

HOW DOES RENTING MEASURE UP?

Capital Expenditure

  • Ownership is retained from day one.
  • No Term.
  • Present value is what it's worth on date of sale.
  • Cash flow and opportunity risk.
  • No long-term obligations.

Traditional Finance

  • Ownership of the asset will be transferred to the borrower at the end of the finance term.
  • The finance term equals or exceeds 75% of the asset's estimated useful life.
  • The present value of the finance payments equals or exceeds 90% of the total original cost of the equipment.
  • Decreases your exposure to primary funders. The borrower pays maintenance, insurance and taxes.
  • No capital upfront. You can also claim depreciation.

Rental

  • Ownership is retained by the rentor during and after the rental term.
  • The rental term is less than 75% of the estimated economic life of the equipment.
  • The present value of rental payments is less than 90% of the equipment's fair market value.
  • Future contractual expense.
  • No capital upfront. No Technology risk. You only pay for use.

THE FINE PRINT:

This financing model is made possible through Sinetech (Pty) Ltd, in partnership with AR Solutions.
Rental periods are flexible and range from 36 months (3 years) to 120 Months (10 years). Terms are dependent on risk profile and deal structure.

At the end of the rental contract, you can elect to:

  • Transfer the solution for a market related price.
  • Return the solution with no further rental obligation.
  • Upgrade or replace the existing solution & structure a new rental term.
  • Restructure the rental over an additional period based on the lifespan of the solution.