Why Lease your Security Equipment?
By leasing your security equipment, you benefit from cash flow friendly monthly payments that spread the cost of the equipment over a period while giving you certainty of payment.
Rental (agreement to hire)
We recommend that video surveillance systems are financed under a rental finance agreement, as this gives you ultimate flexibility to be able to keep up with ever-changing technology. Due to the nature of Digital Video Recorder technology (much like a computer, which is running 24/7) these systems have a shorter life than security systems. Being able to ‘upgrade’ at the end of the term prevents you from being left with outdated or worn equipment.
- GST is payable on the monthly rental payments.
- The rental instalments are generally treated as an expense.
- No depreciation is claimed on the asset.
- This has no effect on your Balance Sheet (subject to IFRS disclosure notes).
- Ownership remains with the leasing company.
Lease to own (hire purchase)
We offer Lease to Own finance on Security and Access Control Systems, as these systems typically have much longer life spans.
- GST is payable at time of purchase (on cash price).
- The interest component of the instalments can be claimed as an expense.
- Depreciation is claimed on the asset as an expense.
- The equipment is recorded as an asset, and the lease recorded as a liability on your Balance Sheet.
- Ownership transfers to you at the completion of the Rental Agreement.
Customer Benefits of Leasing:
- Conserve Cash - pay for use over time
- Fixed Regular Payments
- Rentals may often be treated as a deductible operating expense.
- A cost-effective solution to acquiring equipment.
- Rental payments are generally tax deductible (you should seek advice from your accountant).
- A lower cost of entry to acquisition of new equipment.
- Capital expenditure preserved for core business functions.
- Convenience of acquiring equipment and finance through one source.
- Other lines of credit are preserved for other uses.
- An exchange plan - Upgrade more easily
Disclaimer: The above is a general guide only; we recommend that you seek independent accounting advice.
