DES Finance

WHY USE DES FINANCE?
DES Finance offers you the total package solution, from equipment and service to finance, FINANCE IS THE TOTAL SOLUTION.

WHY NOT BUY THE EQUIPMENT OUTRIGHT?
If you buy the equipment outright your money is tied up in an asset which will reduce in value over its effective life. Leasing on the other hand allows you greater flexibility to invest your existing capital into core business requirements, as well as having the equipment you need now to complete existing or upcoming projects. The net cost of leasing may be less than you think due to the tax advantage available on
lease payments.

WHAT IS LEASING?
Leasing is an extremely popular, establish method of financing capital equipment. Leasing is a tax effective option to finance your next capital equipment needs.

HOW DOES IT WORK?
Leasing is a contract between a leasing company (lessor) and a customer (lessee), giving the customer the use of the equipment for business purposes in return for a monthly payment over an agreed period of time. The lessor retains ownership of the equipment making the product highly advantageous for tax purposes. Because the lessor retains ownership of the equipment the asset doesn’t appear on a company's balance sheet as a liability, rather it shows as an operating expense and doesn’t affect existing credit lines or bank borrowings.

WHO LEASES?
Every business sector of the Australian economy has leased equipment at one point or another. In today’s market leasing is increasing across all sectors, as business looks to keep already existing capital in the bank for core business requirements. Lease payments also keep assets off your balance sheet.

SAVES WORKING CAPITAL
Investing in capital equipment ties up your cash in a depreciating asset. This means that once the equipment has been used for one project it may not be suitable or in working order for the next project. Leasing equipment on the other hand allows you to save your existing capital for product development, expansion or investment, not to mention the ability to upgrade the equipment to fit with new contracts or
business direction.

PREDICTABLE CASH FLOW
Leasing allows you to have a predictable monthly payment for a nominated period of time. Lease payments are not affected by changing interest rates therefore you have a fixed, known payment for the life of the agreement. No deposit or residual values are needed for operating lease, leaving you with no residual risk.

TAX EFFECTIVE
With business use lease payments are 100% tax deductible. We recommended you seek independent advice on all tax related matters.

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