ALL INCLUSIVE PROPOSAL
FOR A RENTAL / SERVICE AGREEMENT

The Smart way to Operate an Industrial Chiller

Here are Ten sound reasons to Rent your Industrial Chiller:

  1. As a customer you can easily keep up to date with all the latest technology.
  2. Our repayment structures offer you total flexibility to maximise your cash flow.
  3. We place strong reliance on the intrinsic value of equipment financed.
  4. There’s generally no upfront capital expenditure or outlay so our customers working capital remains untouched and can be invested into other growth areas for the business.
  5. Rentals can be tailored to your individual needs. We can use annual escalation in line with inflation and reduce the initial rentals.
  6. As rentals are a tax deductible operating expense, they are off balance sheet, and no capex approval is required.
  7. You will be entitled to deduct VAT paid from VAT collected, which will result in a saving.
  8. No deposit is required on a rental agreement.
  9. As rentals are totally off-balance sheet – your equity, current returns on assets ratios are improved and unlike a lease do not need to be capitalized.
  10. At the end of the rental period you can continue renting the equipment for a nominal amount per annum.

Highlights

  • Save working capital: Preserve your working capital without needing a large cash outlay for key assets and focus rather on your core business ​
  • Return on net assets: Enhance your balance sheet and income statement with a better return on net assets
  • Obsolescence hedge: Manage the life cycle of your business assets through cost-effective rental finance
  • Flexibility: Enjoy flexible finance terms and structure repayments according to your business needs
  • Profitability: Reduce your debt exposure and enjoy tax advantages, using off balance sheet financing to enhance your business profits

Sample Proposal

As Chiller & Aircon (C&A) are the air-conditioning experts let us look after our own equipment. We propose a complete rental and service agreement over a 7 (seven) year contract period. The capital outlay on your 2 (two) chiller plants will be done by C&A at approximately R2,800 000 (two million eight hundred thousand rands only) to R3,000 000 (three million rands only) for the 2 (two) chillers for a monthly rental of +/- R30 000 (thirty thousand rands only) per chiller over a 7 (seven) years contract period.

We suggest that your services on the plant and equipment be taken over by C&A for +/- R75 000 (seventy-five thousand rands only) per month. All breakage and maintenance on chiller is for C&A account, all equipment on floors to be serviced by C&A. Extra’s on floor for your account. Rigging and installation for your account of new chiller.

As indicated above rentals are fully tax deductible as this is on rental contract. Inclusive of services all can be tax deductible. That could include your services part of the agreement.

As this is our opening document, further negotiations and detail on contracts can follow after your indication of interest.

We Should Be Talking

Talk to the experts. We offer a FREE consultation to assess your exact needs and wants and to get you the exact equipment that you can install and expand into making the solution offered the ideal one. And even better, we can offer you Asset Rental Fiance that allows you to take advantage of your cashflow position to expand your business.

Tell Us Who to contact - Leave your deails in the form in the right sidebar and we will get back to you!

Talk to us - there is a lot to discuss. Call Cassie directly - 082 654 4376.