We have possibly seen the headlines in the media about consumer and corporate rental products that have charged the customer significantly more than what an asset or piece of equipment is worth. And by significance, there have been instances where the total incurred rental cost has been in excess of 5 times the original value of the equipment, let only the second-hand value. It’s hard to defend this outcome (in our opinion) however, there will be those who may point to the following factors that may contribute to this:
From a customer’s perspective, it can be difficult to understand why you should pay significantly more than the original cost of a depreciating asset or piece of equipment.
When and if your lessor/lender raises the above factors, how does that make you feel?
There are legal contracts in all aspects of life and business, and it's possible that your own company might have legal terms and conditions that protect your business interests but might be seen as restrictive or possibly a little unfair by your own customers.
At Amicus we have a very simple approach to asset, equipment, and project financing…find the right product to deliver the right solution for our customers.
We believe that under various circumstances, every type of financial product has its place and can achieve the right outcome. Whether you need a finance lease, a rental product, ownership, or a mix of capabilities, our starting point is to understand what you are trying to achieve. We will provide ideas and options and we will highlight what the risks might be.
So yes, we will highlight the above factors for you to consider. Importantly though this will happen upfront when we are building and designing the right solution for you and not as a surprise at the end of the contract. That’s the reputation we want asset and equipment finance to have.
Sydney
Level 10, 2-4 Bulletin Place
Sydney NSW 2000
Phone: 1300 360 877
Melbourne
Level 2, 517 Flinders Lane
Melbourne VIC 3000
Phone: 1300 360 877
Brisbane
Level 8, 344 Queen Street
Brisbane QLD 4000
Phone: 1300 360 877
Amicus QLD Contracting Pty Ltd
QBCC Licence No: 15240138