Asset Finance Made Easy
Established in 2011, Upstream Finance provides Asset Finance to our customers, allowing them a rent–to–own option, with terms ranging from 24 to 60 month rental. This has allowed us to continue to find new ways to make these products and services more available to businesses in the marketplace today.
The Technology market is the most rapidly growing market in the world today. Keeping pace with products, continually improving service to clients and improving operational efficiency has become a complex issue.
Asset Finance is aimed specifically at this market and caters for change over a period of time. It is therefore possible for clients to expand their systems as needs indicate and to do so without drastically affecting their budgets and cash flow.
Although flexibility is of major importance in any installation, our rental packages have further been designed to offer the greatest possible tax advantages, as well as to cater for the high inflation rate in the economy today. Structured financing allows savings in today’s money (the most expensive) and then allows inflation to erode the value of money over a period of time.
Asset - Office Solution
Asset finance for office solutions is a financial arrangement where companies obtain funding to acquire office assets through leasing, hire purchase, or equipment financing, enabling them to access necessary equipment without large upfront costs.
Asset - Solar Solutions
Asset finance for solar solutions is a financial arrangement where individuals or businesses obtain funding to install solar panels or other renewable energy systems, reducing upfront costs and enabling them to generate their own electricity and reduce their carbon footprint.
Applying for Asset Finance
Applying for asset finance involves submitting an application to a finance provider, detailing the assets to be financed, financial information, and business plans. The provider assesses the application to determine eligibility and offers suitable financing options.
This product allows customers to acquire and expand their business operations without the need to interfere with budgets and Company cash flows. With options ranging from 24 to 60 months to pay for operational equipment and hardware (Telecoms, Fibre/wireless Internet, Energy solutions) you can focus on growth while we take care of your operations.
Advantages of Rental as opposed to Cash
Rental
- May escalate installments to suit user
- VAT payable monthly
- Interest calculated on a cash prices before VAT
- 100% tax deductible monthly
- Operating expenses in the income statement
- No capex approval required
- No deposit is necessary
- Recoupment Tax avoided
- Off Balance Sheet
- Control / contact with user base is secured
- Improves equity ratio, current ratrio and return on assets ratio on financial ratio
- Option to upgrade equipment is available free of additional VAT on original equipment and if the same supplier is used for new equipment, a preferential discounted figure is given effectively this is a substantially higher "trade-in" amount
Cash
- Capital outlay up-front reduces Working capital
- VAT payable monthly
- Interest lost over period as cash- that could have enjoyed an interest return of its own- is paid up-front
- Deductible by depreciation via balance sheet annually
- Appears in the financials as an asset
- Capex approval required for purchase of equipment
- Capital outlay up-front
- N/A
- On Balance Sheet
- Control of user base is lost
- Has to be capitalised and has an effect on most ratios
- Very little or no value is attached to trade in or 2nd hand equipment after a period of about 2 years and there- fore capital would effectively be lost when new equipment is purchased as no return on capital would be recognised.
