CORPORATE BUSINESS AUTOMATION

Rentals are fully tax deductable, thereby minimizing income tax obligations. Rentals are "off balance sheet" and are shown as an operating expense, thus improving gearing ratios and return on asset ratios. Rentals avoid using capital expenditure budgets Rentals can give a saving in VAT because the VAT is not capitalised up front, but rather paid monthly with each rental. The VAT on the rental will be regarded as input tax and may be written off against any output tax collected. No deposit is required, thus reducing capital outlay. Initial monthly rentals can be reducedby use of annual escalation's of between 5% to 15%, thereby assisting immediate cash flow, and increase in line with inflation. The purchaser has the option to upgrade the equipment before or at the end of the contract, thereby providing the flexibility to change in line with improvements in modern technology.