Refresh your business with a rental
A Team Leasing rental/operating lease is where you pay to use equipment over a fixed period and do not necessarily wish to own the equipment at the end of the term. This type of financing makes perfect sense when you need to acquire equipment that becomes obsolete due to changes in technology or simply wears out after a period of time.
Payments under a rental agreement are generally less expensive than other forms of finance as Team Leasing will assume residual risk in the lease. Like other leases, the residual value has the effect of reducing the payments throughout the term however, with a rental you have no liability for the residual value. This is completely Team Leasing’s risk and you can generally enjoy a much lower interest rate than you would with other finance products.
At the end of the rental agreement you can either:
- Return the old equipment and upgrade to new
- Return the old equipment and walk away
- Continue to rent on a month to month or for a fixed term with a discount
- Offer to purchase the equipment for fair market value (FMV)
If you need a rental/operating lease that is just right for your business, apply now or contact us online or call us on 1300 798 977 and learn how Team Leasing can help your business grow.
Features of a Team Leasing rental/operating lease
Our rental agreement offers enormous flexibility as you can change or refresh equipment through the term of the agreement without necessarily increasing the payments:
- Payments are fully tax deductible if used for business
- May be considered off balance sheet so payments are treated as an expense and the liability is only shown in the balance sheet notes
- Make your ownership decision at the end of the term rather than the beginning
- Flexibility, so you can add and remove equipment, change the term and your payments
- Reduced administration, with no need to keep asset and depreciation schedules
Benefits of a Team Leasing rental/operating lease
There are many tax, cost, administration and technological benefits for your business:
- Payments are fully tax deductible
- Lower interest rate as we invest in the residual value
- 100% financing including software, installation and maintenance
- Removes ownership problems such as disposal
- Allows you to keep pace to with technology at no extra cost
- Reduced Total Cost of Ownership
- Reduced administration, no need to keep asset and depreciation schedules
The Refresh Plan
The Refresh Plan is a powerful and innovative tool that takes advantage of the flexibility of the rental product. It allows you to change the equipment that you are renting during the term of the agreement without necessarily increasing the rental payment. This is particularly useful if you need to change or replace equipment before the contract finishes but do not wish to spend any more per month or quarter.
The Refresh Plan is only available with the Rental/operating lease product. Please ask your Team Leasing Relationship Manager for further details on how this product could assist you.