• Parking Solution Finance

Parking Solution Finance




InnerVision have partnered with Finlease to offer our clients a convenient finance option.

The Rental product provided by Finlease is a form of capital equipment procurement for all types of businesses (mainly public and Government bodies. The key to a rental is that the ownership of the equipment, and all the risks associated with the ownership of the equipment, rests with the financier (lessor) rather than the lessee (the renter).

Key Features
  • Assets and associated debt liabilities are off the balance sheet
  • Rental payments are an expense item for reporting purpose and 100% tax deductible
  • Improved working capital, gearing and return on assets
  • Rental hedges against technology obsolescence
  • Lessee has no residual responsibility to the lessor for the value of equipment at the end of the lease

Greater flexibility with financial certainty with no large upfront payment ensures you can change, upgrade, recapitalize and reinvest when you want to.

Many larger private sector companies are often under pressure to get debt off their balance sheet to provide a greater return to their shareholders. This option assists in managing the ‘debt to equity ratios’ effectively. A Rental has distinct advantages over other traditional forms of equipment finance.

Easy End-of-Term Options (Maximum Flexibility)

At the end of the initial contract term you can:

Return: Return the goods at no charge or residual responsibility.

Upgrade: Upgrade to new equipment.

Rent: Continue to rent at a reduced rental rate for a fixed term or continue on a month-month basis.

Buy: Make an offer to buy the goods at their market value.

Key Benefits
  • Insurance against Obsolescence: You are not locked into owning obsolete equipment in the event of technology making the equipment redundant.

  • No Residual Responsibility: whereas a finance lease locks the lessee into paying a hefty residual payment at the end of the contract, a no-such obligation exists under a Rental. The Lessor takes all the risk of ownership.

  • Off-Balance Sheet Financing: A Rental, unlike a finance lease, does not appear as a liability on a Company’s Balance Sheet. This means that their ‘debt to equity ratio’ is not affected. In short, a rental commitment does not affect a Company’s borrowing capacity.

  • Equipment Add-Ons: Only a Rental allows for add- ons without the need to complete a brand new lease (and the resultant legal expenses). With the Rental Agreement, it is administratively easy to add to the lease.

  • Taxation Benefits: Rental payments are deducted from the income of the business-like wages. A rental is an operating expense, not a capital expense and therefore represents a full 100% tax deduction (assuming 100% business use).

  • Use of Funds: Rental allows you to use available cash in other areas or to save cash reserves. It makes sense to rent items that depreciate rapidly and buy items that appreciate.

  • Total Solution Packaging: The rental option allows you to bundle in services, installation, and maintenance, commissioning costs, training and even consumables into one rental payment.

The Rental Comparison
  BENEFIT  RENTAL   TRADITIONAL LEASE CASH PURCHASE
 Conserve Cash - Pay for use over time  Y Y N
 Fixed Regular Payments  Y Y N
 Reduce ongoing paperwork - simnple terms within a Master Agreement Y N N
 Access to all asset types Y N Y
 Bundling of hardwrae, software, maintenance and services Y N Y
 Tailored Refresh Plan - upgrade more frequently Y N N
 Greater Flexibility - ability to exchange throughout the contract Y N N
 Flexible end of term options Y N N
 Reduced cost of ownership  Y N N
Frequently Asked Questions
What is the interest rate?
Unlike a loan, no interest rate is charged because you're paying for the use of the equipment over the fixed term. You are not repaying a loan.

What if I want to upgrade to new equipment during the rental term?
That's ok. We simply adjust the agreement to incorporate the cost of the new equipment and establish a new term.

Are the payments Tax Deductible?
Yes - up to 100%, depending on the portion of usage for business.
Tiba Parking Equipment Lease
What happens if something goes wrong with the equipment?
Outside the manufacturers standard warranty, it is the responsibility of the customer to ensure the equipment is maintained in good working order at all times (less fair wear and tear). For maximum convenience, service and maintenance plans can be 'built into' your rental agreement.

Can I add on equipment to my existing rental agreement?
Organising additional equipment during the rental term is simply a matter of signing a variation agreement. This allows you to increase your rental equipment without extending the term, or to add equipment and extend the term so that the rental payments are similar to your current agreement. Just call the Supplier and ask for an add-on quotation.
Do the rental payments include insurance?
It is the responsibility of the customer to ensure the equipment is insured at all times. Your rental agreement can be structured with or without an insurance component. Please ask for quote.

Who owns the equipment?
The financier does. You are only paying for the usage of the equipment during the agreed term.

What happens at the end of the rental term?
Upgrade to the latest technology with a new rental plan. Continue to rent. Return the equipment if you have no further use. Make an offer to purchase the equipment at a fair market value.
Worksite monitoring poles
Can I cancel and hand back the equipment before the end of the term?
If you return the equipment before the end of the term, you must pay for the balance owing. Most clients prefer to upgrade to new equipment and take out a new rental agreement.

N.B Information contained above does not take into account your specific circumstances. You should seek confirmation from your accountant.
Australian Credit Licence Number: 390584 Finlease (Aust) Pty Ltd
Equipment Lease Option Finlease