Thanks for your comments

The rent/buy option along with a normal Finance lease are considered “Off Balance Sheet” transactions as you do not own the goods the financier does.

There is no real advantage in having it “Off balance sheet’ except that it does not mess up your asset to liability ratios.

The main advantage is that the rent/ buy or lease payment is 100% tax deductable as opposed to interest and depreciation claimable on a Chattel Mortgage.

I am not an accountant so the tax advantages would depend on individual situations

Regards

Matt

I got told, and I hope I’m remembering this correctly, that one of the main advantages with rent/buy is that rentals are not required to appear on some accounts (e.g. Profit/Loss and Capital Accounts). Is that correct? And if so, why is that an advantage, if at all?

Cheers

Stephen G

Thanks for your comments.

“Do you have a preference for leasing v rent/buy?”

On smaller items that would be obsolete in a fewyears the ideal way to purchase these would be on a rent/buy option as you can just hand them back and move on.

With larger items a Lease or Chattel mortgage would be the way to go in my opinion as you do have the option of owning the goods at the end and may realise a profit on the sale.

Have a good one Stephen.

Regards

Matt

Another edifying post mate thanks

When I started my now dead and hopefully soon to be re-incarnated small business, I explored the rent/buy option for capital equipment. Unsuccessfully, I might ad…the institutions I applied to took so long to first approve and then backflip on approvals, that they caused irreparable damage in the context of my available funding and schedule…but that’s a whole ‘nuther story.

Do you have a preference for leasing v rent/buy?

Cheers

Stephen G