Outright purchases traditionally have been the norm in South Africa, but all that is changing. Following international trends, South Africans are becoming more aware of various other solutions to furnishing your offices other than purchasing office furniture outright. Let’s have a closer look….
There is still good reason for some companies to purchase outright. Companies that have a cash flush business and are looking to expend cash will have a depreciating asset they can write off over a period of time.
However, for many other businesses where cash is required and better utilised as working capital, the lease rental and hiring solutions make financial sense as one can manage ones operational expense over a period of time without the big cash outlays – amongst other benefits.
With a lease rental you can amortise the cost of procuring office furniture over 3-5 years and avoid the big cash outlay required for purchasing furniture upfront.
In addition, you can write off the full monthly installment amount to tax as an operating expense and keep the furniture off your balance sheet which would otherwise be a depreciating asset. The tax saving offsets the interest if kept to a 3 year lease rental.
This convenient and flexible solution does require a credit application process where you will have to independently qualify for finance as you would for any financial institution. Speak to us for more information regarding this solution.
Lease to Own
This solution gives you all the benefits of a lease rental solution with the additional benefit of taking ownership of the furniture should you prefer not to upgrade at the end of the rental term.
With the lease to own solution, ownership of the furniture is transferred at the end of the term for an additional settlement payment.
Hiring office furniture is an ideal solution for a short to medium term furniture requirements. This solution is convenient, entirely flexible and also does not require a capital outlay other that a small refundable holding deposit.
The longer you hire the cheaper it gets. Click here to view our Hire furniture range
Contact us for more information and we will help you find the right solution for your business.
Phone us on: 010 040 3012