Hire to Acquire allows a customer to hire equipment with an option to buy the goods outright at the end of an agreed minimum hire period. The final “buy” price is equivalent to one months rent.
There are some distinct advantages with this system:-
- The monthly hire costs are treated as expenses for tax purposes, hence the client is effectively able to claim a discount of 30% (current corporate tax rate) to these costs
- The asset, which is acquired, goes onto your books at a value equivalent to the final month’s rental.
- Depreciation costs are substantially reduced from those applicable to the new or outright purchase cost of the equipment.
- This method offers a means of improving the returns on total assets – it’s “Balance Sheet Friendly”.
For further information, please ring 1800 802 299 or contact the Accuweigh office in your state.
Accuweigh is Australia’s largest industrial weighing and packaging company with sales and services branches in all mainland states. Our product range is extensive and covers all weighing applications including on-board truck scales, as well as filling & bagging equipment, packaging equipment and food inspection equipment.