Lease Options
Benefits of Leasing
- Working capital put to better use.
- Capital can be employed to more profitable purposes rather than in bins which just depreciate. This allows for better investment opportunities in stock for example, from which the business derives its core income, or investment in machinery which gives far better returns.
- Preserve debt capacity
- Debt can be used for more profitable purposes such as machinery or stock.
- Tax advantage
- 100% of all rentals can be offset against profit.
- Planning and budgeting
- By structuring the facility you can match payments to cash flow, also makes for simplified budgeting.
- Payment reflects usage and useful life
- By leasing it spreads the cost of the bins over the life rather than as opposed to a very general depreciation rule. Rotaform Bins are proven to last far longer than alternatives so by spreading the cost of bins over the life, actual costs are better reflected.
- Minimise total costs
- Total costs are fixed, maintenance costs are a thing of the past. This coupled with the fact that Rotaform Bins are proven to last, make our products the cheapest option in terms of total cost of ownership.
Rental Bin Examples
Part 1. Existing Fleet Purchase & Rent Back
The existing fleet of bins could be purchased back at your book value or greater, to a maximum of the original purchase price.
The cheque is written out on signing of agreement and the first rental payment is due 1 month later.
The rate at which the bins are leased back is dependent on the buyback price. For example, if bins sold to Rotaform $200.00 each, they will be leased back at a rate 18* cents per day per bin for 5 year term or $250 each
Part 2. New Bins
New Bins can be leased at approximately 31* cents per day for a 5 year term. Again, payments can start one month after delivery. Or $450 each
*Note: Prices are guides only and are dependant on current interest rates, subject change at any time.