RentWorks Africa has reached a new milestone in its history with a rental book of more than R1billion of non-IT assets. The company has traditionally focused on financing IT assets, since it was first founded in 1998, but in 2007 took the decision to diversify its asset classes.
In December 2012, the company reached its first non-IT R1billion book, with an extensive variety of assets, from forklifts to golf equipment, drop safes, mining and medical equipment, fridges and generators, among others. Serving an increasing number of industries, including mining, construction, retail, security, manufacturing, medical and leisure, RentWorks Africa has become a significant player in the non-IT asset rental space.
Jacques de Klerk, Director at RentWorks, believes that the diversification of asset classes has proven successful to date, and promises massive growth potential for the future. “Sales-wise, our non-IT rental sales have this year for the first time exceeded our IT asset volume on an annual basis,” he says. “There’s more residual value on these types of assets than on most IT equipment, which means this part of the business has become an important focus for us to grow our net residual book.”
The benefits to clients of the rental model over cash purchase range from optimising cash-flow to keeping financials liquid and the business flexibility it offers. For companies looking to use an asset for a specific period, for example, a construction company that requires capital equipment for a two-year contract project, rental offers clear cash flow, reduced risk of disposal and flexible end of term options.
“We tailor solutions to meet client requirements that neither the bank nor supplier is able to provide through its traditional offerings” says De Klerk. “We provide a single point of contact and carry the asset disposal risk, which makes our services an attractive option to clients.”
The diverse portfolio of assets that RentWorks offers is a major differentiator for the company, setting it apart from other more IT focused rental organisations. It also offers further benefits to clients. Instead of working with an IT rental company and still having to source non-IT equipment from separate suppliers, RentWorks clients can rent multiple asset types from the company. For example, a retailer might want IT equipment, point-of-sale assets and forklifts. RentWorks is able to provide a tailor-made package to suit the client’s exact needs.
“RentWorks is brand-independent and its multiple funding solutions cater for clients at every level of business maturity, whether they are looking to rent brand new top-tier equipment or to rent second-hand assets from us,” says De Klerk.
He adds that the company is preparing for rapid growth in non-IT asset rentals. “We’re hoping to double the value of the assets we’re currently financing in the near future,” he says, “We have an appetite for a diversity of new asset types and industry solutions and we’ve now proved that we can play a considerable role in this market, so we’re looking forward to what the future holds.”