A Graphics Finance contract rental is simply a form of long term, fixed price operating lease which is available to major companies and Government Instrumentalities. It offers immediate plant usage with the ability to handle rental payments as you generate operating income. With a Graphics Finance contract rental, you have the use of any equipment for an agreed period, usually from 2-5 years. You retain responsibility for the repair and maintenance of the equipment and at the end of the lease you simply return it to Graphics Finance. (subject to return conditions).

• What is it?
• Benefits

What is it?

• A form of long-term, fixed price rental where the lessee (operator) is responsible for maintaining the equipment in good condition.
• The lessor (Graphics Finance) owns the equipment, predicts its value at the end of the hire period (a residual value which is not disclosed to you) and charges a rental taking this value into account.
• The operator makes regular payments as they generate operating income from the equipment.
• Rentals are charged as a business expense to the profit and loss account.
• For accounting purposes, an operating lease is an "off balance sheet" form of funding.
• The operator simply returns the equipment to Graphics Finance at the end of the hire period and has no liability for any residual value (subject to return conditions).
• GST is charged on each rental with the lessee claiming an input tax credit back if eligible.

Benefits

• Known, budgetable cost -except for maintenance.
• Preserves working capital -funds can be invested in other parts of the business.
• Cash flow is efficient - the rentals can be paid out of operating income.
• Tax efficient - rental payments can be offset against taxable profits.
• An "off balance sheet" transaction - accounting ratios can be improved.
• Customer has no disposal problem or risk on re-sale value; this is taken by Graphics Finance. (Conditions apply).