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Melbourne, Australia

Small businesses turn to renting to maximise cash flow

Australian Franchise News – 03-07-12


OPTING out of owning key office items in favour of renting them may be the centre of boardroom discussions next month as small businesses look for ways to minimize expenditure and maximize cash flow, according to Australian franchise Mr Rental.

Market research by Mr Rental indicated that there was a growing demand from small businesses to rent office equipment with 21 percent intending to rent a brand new laptop and 16 percent a brand new lounge in the next 12 months, rather than buying them outright.

Mr Rental Managing Director James Nixon-Smith said the small business market was a growth opportunity for Mr Rental with asset renting providing many benefits.

“Renting allows businesses access to the equipment and assets needed in order to operate, without a large up-front cash outlay,” he said.

“With consumer and business confidence still at a low, businesses are seeking methods to maximise cost effectiveness and free up capital that can be injected in other important areas of the business such as sales and marketing.

“Periodical rental costs also make it easier for small businesses to forecast cash flow over time and rental payments can be fully tax deductable.

“Rental items are also tax deductable expenses for the entire period of possession, whereas by purchasing items outright you can only claim tax deductions for a certain period.

Mr Nixon-Smith said the survey indicated that a significant proportion of businesses looked to upgrade items such as laptops regularly.

“Small businesses want the latest high-quality equipment from leading brands and with their changing needs in an ever shifting business environment the flexibility and convenience of renting comes to the fore.

“Mr Rental is the one stop shop solution for businesses where they can rent everything from boardroom items and computers, to furniture for reception areas and kitchen items.”

Mr Rental has the latest boardroom and office equipment including large plasma TVs for presentations and meetings, data projectors and audio equipment.