Hire advantages

  • 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 goods’ 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 doesn’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

Supply conditions

  • The operation must be approved by the finance company.
  • Payments with monthly or quarterly postponed fees
  • Good insurance included

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