Asset Financing Solutions
Our partner team of specialists at Merchant West have a solid understanding of operational, financial and transactional complexities, having over 780 years’ collective experience in the asset finance industry to offer you a range of finance products and boutique solutions. The benefits of financing your assets through us is that we offer you flexible repayment options either on a monthly or quarterly structure and rentals that are 100% tax deductible, minimising income tax obligations as well as savings on costly administration fees.
An operating lease is purely off-balance sheet funding where there is no depreciation to write off, and the interest is calculated on the capital amount, excluding VAT. By the end of the lease period you do not own the asset, and you will only have paid for the use thereof.
Operating Lease with Ownership (rent to own)
An operating lease with ownership is structured in the same way as a standard operating lease, with the exception that there is an option to take ownership of the asset at the end of the lease period (at a negotiated premium).
With instalment sales ownership of the asset is automatically transferred to you once the final instalment on the lease has been paid. This lease is treated as on-balance sheet funding, and depreciation can be written off. Interest is charged on the full capital amount, including VAT.
Sale And Leaseback
A sale and leaseback arrangement is one where the seller of an asset leases that same asset back from the buyer. With Merchant West this involves you selling your fixed asset back to us, and it is then rented back over the remaining lifespan. In this way you enable your company to still make use of the asset while freeing up cash for other company operations.
We offer insurance for assets such as the following:
Commercial and Motor Fleets
Construction and Engineering Equipment
Mining and Agriculture Equipment