Benefits of Hiring and Leasing
Hiring and leasing your office furniture has a number of advantages over purchasing it directly. Take a look at the list of benefits of renting or hiring over outright purchasing.
1. Tax Benefits.
You can write off the full monthly instalment amount to tax as an operating expense and keep the furniture off your balance sheet which would otherwise be a depreciating asset.
2. No Cash Outlay.
When purchasing furniture your upfront VAT and capital outlay, reduces your working capital. By hiring or leasing, you can better utilize your cash flow where it needs to be and spread your furniture expenditure over 3 – 5 years.
The VAT on the monthly instalment is also now only payable monthly and is fully recoverable as a Vat input credit.
3. Flexibility and Convenience.
Hire furniture is available on a weekly or monthly basis and additional furniture can be arranged as needed. When no longer required the furniture can simply be returned.
Expanding companies have the option to increase their leased furniture requirements and escalate monthly instalments to suit or the lease can be paid up at any point in time.
4. Payment Options.
For leased furniture, create your own payment plan on your capital amount by selecting a monthly instalment that fits in with your budget with payments over 36 – 60 months.
Hired furniture is also paid on a manageable monthly basis.