Wednesday, June 28, 2017
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Financial Products Operating Rental / Lease

Operating Rental / Lease

What is operating lease finance?

An operating lease is a rental agreement where the residual value of the asset is set at the outset, based on the estimated use throughout the term. Rentals based on the depreciation of the asset throughout the term of the operating lease agreement. Centrafin holds the liability for a predetermined value for a contract period, which means lower monthly rentals.

 

The potential advantages of using an operating lease through Centrafin:

  • 24 hour turnaround time on credit applications
  • Centrafin is a primary funder
  • Competitive rentals
  • In certain circumstances Centrafin is willing and able to finance intangibles such as Implementation, Software and Training without a hardware component.
  • Centrafin is also able to offer no excess, fully comprehensive insurance cover.
  • Obtain equipment now without outlaying scarce capital.
  • Avoid residual capital risks associated with disposal / obsolescence of assets.
  • Keep pace with technology changes.
  • Improve your financial ratios.
  • Assists in more accurate budgeting and forecasting.
  • An operating lease is usually off-balance sheet.
  • Obtain maximum taxation advantage by claiming the full rental as a tax expense.
  • Refresh technology – At lease end, you have the option to “trade up” to new equipment so you can leverage the latest technologies to keep your business competitive.
  • Flexible terms and structures – Choose the term period you want, from 12 to 36 months, with escalations to meet your cash flow requirements.
  • Flexible lease-end options – At the end of the lease term, you have several options available.