These finance options offer asset finance for all farmers trading for more than three years with an annual turnover of R2-million or more. We facilitate the application process with funders who provide finance as an Operating Lease (Rent-to-Own) option. The structure is the same as an operating lease but with the option to exercise ownership of the equipment at the end of the period.
Products available for Rent-to-Own
All of the above options and various other configurations can be customized according to the client’s needs. You are not bound by these configurations and the rent to own option is available for any of Agricon’s products.
The plant layouts may vary and be changed to fit a certain product, power limitation or customer requirement. These options can be discussed with Agricon’s sales team in Bloemfontein on 071-877 3324 or by email to firstname.lastname@example.org.
Once a new configuration is finalised, Agricon will be able to provide an adjusted monthly instalment as a rent-to-own option.
AgriFinance Hub offers asset finance for all farmers trading for more than 3 years with an annual turnover of R2 million or more. We facilitate the application process with funders who provide finance as an Operating Lease (Rent-to-Own) option , the structure is the same as an operating lease but with the option to exercise ownership of the equipment at the end of the period at a pre-negotiated premium
Frequently Asked Questions
- What is an Operating Lease with ownership?
An operating lease is a term contract for the use of equipment during a fixed term, with ownership option and the end of term. Product therefore does not reflect in client`s asset register.
- Why Operating Lease rather than Hire Purchase?
An operating lease does not affect your balance sheet`s debt ratio, which means it has no impact on your other facilities such as over draft, production loans or bonds , it is Off Balance Sheet Funding.
- What is value of product at end of term?
Value of product is determined by dealership that does trade-in, full value of product belongs to the client, this is the reason ownership option is given on contract.
- What is benefit of 0% Deposit?
Creates cash-flow, opportunity cost of capital is important for any business.
- What is interest rate?
Premium is calculated according a fixed rental premium, no interest rate is quoted, but due to VAT deductions and SARS deductions the nett cost on balance sheet over term is better than Prime rate.
- How does VAT payment work?
Vat is payable monthly on invoice, creating a better Vat claim over term
- Premium Terms.
Premiums are payable monthly or quarterly, normally in advance or arrears depending on client.
- TAX Benefits
Premiums are 100% TAX DEDUCTIBLE as an Operating Expense over term, creating a better tax calculation that normal depreciation and interest claims.
- Can I settle anytime?
Yes, settlement can be requested and will be calculated according to outstanding term.
- Who Pays Insurance and Maintenance?
The client pays as per normal conditions for hire purchase
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