- Goods do not give rise to amortisation but they are entirely expensed, the quarterly fee is placed to cost.
- Liquidity management is safe and it can be used for other investment or purchases
- In case of financing or leasing, this would be a debit that impacts the bank account or restrictive Basel 2 rules in force since 01/01/2007
- Distribution of payments over technological goodsâ€™ duration.
- Tax benefits for IRAP purposes, the fees are entirely deductible.
- Update technological products with the possibility of substitution or/and integration during the contract.
- Simplifying account (ex: upon a 36 months contract: 12 invoices, 12 RID, and 12 recording, etc)
- Scrapping cost Minimization or cancellation at the end of the technological duration of the product.
Summarizing the hire advantages
- Financial advantages: it doesnâ€™t affect business liquidity and the financial exposure of the company.
- Economic advantages: no amortisation, budget simplicity and lower spending in the processing of the contract
- Tax advantages: no IRAP
- Operation advantages: technological update also during the duration of the contract
- The operation must be approved by the finance company.
- Payments with monthly or quarterly postponed fees
- Good insurance included