Finance

Many organizations can benefit from financing, through total life cycle management and greater accounting and administration efficiency, easing the strain on working capital.

Dataflex Pty Ltd is able to work with your existing finance company, or arrange new independent or vendor financing for your equipment. Before entering into any finance contract, Dataflex recommends you seek independent financial advice.

Here is some useful information regarding finance options:

HIRE PURCHASE

Your organisation obtains title to the equipment upon entering the agreement. The asset and the liability are accounted for on your balance sheet. With this agreement comes all the "risk and benefits" of ownership. The transaction is subject to the Hire Purchase Act. Hire Purchase is not permitted by some government departments.

FINANCE LEASE

Under a finance lease, title of the equipment stays with Lessor (bank) until the final payment is received. At the expiration of the lease, precedent dictates that the Lessee (you) must purchase the equipment for the nominated upfront Residual Value. "risk and benefits" of ownership vest with lessee, and the lessee indemnifies the lessor from any loss on sale if the lessee chooses not to payout the residual. The Equipment will basically always remain in your possession. The asset and the liability are accounted for on the your organisation's balance sheet.

OPERATING LEASE (Rental)

The risks and benefits of ownership rest with the owner of the equipment - the Financier. Rental has no residual value and there are no indemnities given by the your organization excepting that you insure the equipment from theft and that you will pay the required lease cost for the term. This type of funding provides the inbuilt flexibility of upgrades during the term. There is no residual value to be paid on this equipment, as the equipment is generally returned to the financer when the agreement ceases. Your organization may be given an option to purchase the equipment, or extend the lease at a discounted rate when the lease expires. An Operating Lease generally provides the lowest cost of term capital usage. An operating Lease must meet the requirements of AAS17 and is 100% tax deductible for business purposes.

LEASING BENEFITS

Before entering a lease contract, Dataflex recommends you consider possible benefits, including:

• Conserving Capital
• Cash Flow and Tax
• Providing Off-Balance Sheet Financing
• Capital Expenditure Approval
• Reducing The IT Asset Life Cycle Cost
• Leasing Mitigates Technology and Interest Rate Risk
• Accountability and Financial Management
• Speeds Technology Adoption
• Technology Disposal, Retirement and Refresh
• Termination Of Lease - Options