Why capitalize assets that do not produce an income?

Dataqwip division specialises in financing Capital and Hi-Tech Equipment on an Operating Rental, however it also offers Instalment Sale for those assets with a long life expectancy.

Operating Rentals

  • The Operating Rental is mainly for assets that have a limited economical life expectancy and can be upgraded during the term of the contract. The term of the contract is normally structured to suit the economic life of the asset (3 to 5 years).
  • Payment frequency can be either Monthly, Quarterly, Bi-Annually or Annually and are either linked to the Prime Overdraft or can be Fixed for the duration of the contract.
  • All payments are regarded as an Operating Expense and therefore are totally tax deductible.
  • By constantly upgrading the equipment one not only stays up to date with technology but also reduces down time and increased maintenance costs.
  • Should the client for any reason decide not to upgrade the equipment at the end of the initial contract, they can either return the equipment or continue renting at an agreed new rental and period.
  • VAT is payable on each rental and an Input Tax Credit may be claimed.
  • Financing assets through this means frees up capital in the business which can be used to increase production thus increasing turnover and profitability.
  • For assets with a long economical life expectancy we do offer Instalment Sale financial solutions.