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OPERATING LEASE (RENTAL)


Operating Lease (or Rental) is an agreement where a payment is made by the Customer (Lessee) for the temporary use of ICT equipment owned by BLT Enterprise (Lessor).

The Customer chooses the assets and negotiate the purchase price with the Vendor; then BLT Enterprise buys the assets and give the Customer the exclusive right to possess and use the leased asset for a specific period and under specified conditions, but retains almost all risks and rewards of the ownership.


WHAT’S INCLUDED


  • All equipment listed in the Order;
  • Manufacturer’s warranty for as long as the Rental lasts;
  • All Risk warranty for as long as the Rental lasts;
  • Quarterly invoicing and on-line reporting of all leased equipment for each Cost Center.

 

OPERATIONAL ADVANTAGES


  • Immediate availability of goods without any cash outlay of purchase price;
  • Different and flexible Rental periods from 24 to 48 months depending on the  assets;
  • Obsolete equipment replacement and scheduled renewal programs;
  • Up-to-date and homogeneous equipment;
  • Increased efficiency and productivity for each workplace.

 

FINANTIAL ADVANTAGES


  • BLT Enterprise retains all risks of the ownership of the assets;
  • Lower financial exposition in the short-term compared to purchase: the cost of equipment can be spread over a certain period of time (24 to 36 months) so that its impact on cash flow is less severe;
  • No rental purchase to be paid: it’s not a capital lease!

 

FISCAL ADVANTAGES


  • 100% tax deductibility on lease payments;
  • Depreciation schedule of assets equal to the period of use;
  • The full amount of lease payments is charged as an expense on the Customer's Income Statement (Operational Expense or OPEX) but no associated asset or liability appears on the Customer's Balance Sheet.