Have a financing problem? We have the solution!
Our team of specialists have a solid understanding of operational, financial and transactional complexities, having over 780 years’ collective experience in the asset finance industry to offer you a range of finance products and boutique solutions.
The benefits of financing your assets through us is that we offer you flexible repayment options either on a monthly or quarterly structure or structured to suit specific industry cash flow cycles and rentals that are 100% tax deductible, minimising income tax obligations.
FINANCE PRODUCTS
Operating Lease
An operating lease is purely off‐balance sheet funding where there is no depreciation to write off, and the interest is calculated on the capital amount, excluding VAT. By the end of the lease period you do not own the asset, and you will only have paid for the use thereof.
FINANCE PRODUCTS
Operating Lease with Ownership
(Rent to own)
An operating lease with ownership is structured in the same way as a standard operating lease, with the exception that there is an option to take ownership of the asset at the end of the lease period (at a negotiated premium).
FINANCE PRODUCTS
Installment Sale
With instalment sales ownership of the asset is automatically transferred to you once the final instalment on the lease has been paid. This product is treated as on‐balance sheet funding, and depreciation can be written off. Interest is charged on the full capital amount, including VAT.
FINANCE PRODUCTS
Sale And Leaseback
A sale and leaseback arrangement is one where a customer has unencumbered assets that they wish to utilise to raise capital for the business. This involves you “selling” your asset back to us, and it is then rented back over the remaining lifespan. In this way you enable your company to still make use of the asset while freeing up cash for other company operations.
FINANCE PRODUCTS
Structured Deals
- Skip payments in months where your cash flows into your business are often slower than other months due to operational and manufacturing periods or global holidays
- VAT Back – reduce your repayments – upon successful claim of your vat payments from sars, you inject vat portion of your asset’s value into your instalment repayments
- Residual value payments
- Bullet payments
- Escalated payments
FINANCE PRODUCTS
Insurance
Merchant West has a dynamic insurance offering for all asset classes that we finance. powered by econorisk, market leaders in insurance broking, we strive to offer the best cover at competitive premiums.
FINANCE PRODUCTS
Financial Structure Solutions
- Inflation based escalating payments
- Monthly and quarterly payment frequencies
- Cash Flow Cycle based payment structures
- Pure Rental with Residual Value structures which minimise risk and cost, primarily in the IT and Yellow Metal asset categories
- Balloon payments
- Term specific options based on asset category
- Full IT lifecycle offerings