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Asset - Outright Purchase!
Why Asset Finance ? Asset - Outright Purchase! Year 1 Year 2 In Year 2, Company A generated the same profit as in Year 1 Same equipment was used in both Years Result Equipment depreciated in value by 33% Company A went backwards of in excess of 33% in value
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Why Asset Finance ? Asset RENTAL Year 1 Year 2
In Year 2, Company A generated the same profit as in Year 1 Same equipment was Rented in both Years from Channel Capital Result Monthly Rental instalment is 100% TAX deductible for entire term R100,000 can be utilized for operational and company growth instead of on depreciating equipment Company A maintained profit level and value
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