With a record-high petrol price hike and another increase in interest rates of 0.5%, the future for South African families and businesses is becoming increasingly uncertain. It is crucial, therefore, to keep local businesses afloat as they are the lifeline of many local households.
At RentWorks, we are your trusted growth partners – it is our goal to offer you innovative and agile solutions to ease your financial burden and maximise your purchasing power.
According to Economist Dawie Roodt, the increase is a result of factors completely out of the country’s control, such as the global oil price and a volatile rand. He said the price of fertiliser has also increased sharply and that this will lead to another significant hike in food prices in the coming weeks. “All of this means economic growth will be lower than projected, and that will result in more poverty and unemployment,” he said.
Raising capital is usually a complicated task, especially during these challenging economic times.
One possibility to create a cash injection almost immediately is a Sale and Rent Back opportunity.
Here’s how to ease the burden
If you have bought new IT equipment in the last 6 months, but need cash as soon as possible, our Sale and Rent Back option is the answer.
RentWorks will buy your existing technology after which you are free to rent it back with fixed, low monthly payments. Renting also consolidates your company’s assets into a single, flexible rental schedule, making budgeting simple. This also reduces the asset side of your company’s balance sheet, leading to an improved balance sheet ratio.
Free up cash while still using your assets
Our Sale and Rent Back option is an asset-based financing model for raising liquidity in which we buy your IT assets and rent them back to you almost immediately – causing no negative impact on your operations or productivity. Capital that was previously tied up in the company can now be released independent of traditional financing and banks. Consequently, it does not influence your credit rating, which can be advantageous for financing later on.
In case you needed any more reasons – Sale and Rent Back is extremely tax efficient! Your fixed monthly payments will qualify as operating expenses and can thus be claimed against tax.
All disposal obligations are now the responsibility of RentWorks, and we will either refurbish and remarket the technology or dispose of it in a way that is in accordance with environmental regulations.
On top of this, we provide a full asset management service to ensure that you get the absolute best out of your IT equipment.