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Remex Consulting continually strive to bring value to our clients. One way that we add value is to help our clients to finance a project or an acquisition.
This may be as simple as agreeing to payment terms, or extended payment terms. Or it may be by helping our clients to secure a commercial agreement with a financier.
Remex’s finance partner offers three types of finance: capital lease, positional operating lease and non-positional operating lease; each with their own idiosyncrasies. One of these, or a combination of several of these, will be right for your business and, typically, the finance rates are very, very competitive.
Capital Lease
A capital lease, or finance lease, is a commercial arrangement where:
- you choose an asset that you wish to purchase, the financier purchases it on your behalf
- the asset is listed on the balance sheet of, and depreciated by, the financier
- you make repayments, the interest component of which is expensed on your profit and loss
- at the end of the lease, you payout the residual amount, at which time you take ownership of the asset
Positional Operating Lease
A positional operating lease, or rental, is a commercial arrangement where:
- you choose an item that you wish to purchase, the financier purchases it on your behalf
- the asset is listed on the balance sheet of, and depreciated by, the financier
- you make rental payments, all of which are expensed on your profit and loss
- at the end of the lease, you have the option to return the item to the financier, negotiate a new lease or to purchase the item at the price (the “position”) offered by the financier
Non-positional Operating Lease
A non-positional operating lease is a commercial arrangement where:
- you choose an item that you wish to purchase, the financier purchases it on your behalf
- the asset is listed on the balance sheet of, and depreciated by, the financier
- you make rental payments, all of which are expensed on your profit and loss
- at the end of the lease, you take ownership of the item as a fully depreciated asset
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