What is a Rental Plan?
A Rental Plan is as a business finance product wherein the customer rents an asset from the financier, be it a bank or a financial institution, with set monthly repayments in the form of rentals over a predefined term. Generally the term varies from 12 to 60 months.
Advantages of Rental Plans:
- Monthly rental payments are 100% tax deductable where the goods are wholly or predominately used for business purposes
- Asset is an operating expense
- The asset does not reside on the customers balance sheet
- The monthly instalment is fixed for the term
- 100% finance available
(Independant professional financial and tax advice must be sought to determine all tax and GST issues)