Sensor Finance was launched in May 2015 as the dedicated funding channel for Sensor Security, a Hikvision and Bosch distributor. The company addresses some of the critical funding obstacles of security technology for businesses.
According to Deloitte’s Strategic Risk Survey, “we have seen an increased interest at board-level to manage and understand strategic risk, in fact it has become a priority. At the same time security governance is transitioning from a policing function into becoming more strategically aligned to the business. We believe companies will soon be addressing the impact of security and security technology at board level.”
Sensor Finance offers asset rentals to clients. Rental agreements can be structured over terms of 24 months and up to 60 months. Our transactions are off-balance, which means that businesses can still have their bank credit lines available for other transactions.
The concept of asset rental in the security industry is not new. We have seen some of the bigger security role players incorporating finance into their service agreements, facilitating the finance costs and risks themselves. We have offered some of these companies the opportunity to take over the management and risk of the rental agreements as the management of rental and leasing agreements requires specialised skills.
Sensor Finance offers a business solution and not solutions to homeowners or individuals. When we assess a rental application the following criteria is taken into consideration:
• How long has the business been in operation?
• Annual turnover (must be above R2 million).
• Credit record.
• Does the rental application support a new tender or business deal for the client?
• Profile of directors / business owners.
Renting benefits a company’s balance sheet. It eliminates depreciation schedules since rental payments are generally line-item expenses on the profit and loss (P&L) statement. By not having equipment debt on your balance sheet, your company is more attractive to financial institutions for other fiduciary needs. Since lease payments are usually treated as a pre-tax business expense, a company benefits by reducing its tax exposure.
There are several advantages of renting equipment:
• No upfront costs.
• Access to a higher standard of equipment which might be too expensive to buy outright.
• Pay for asset over the fixed period of time, which helps to budget for future.
• Spread the cost over a longer period of time and match payments to your income.
The bottom line is that renting minimises demands on cash flow, eases the impact of equipment obsolescence, maintains existing lines of credit and reduces tax liability.
For more information, contact Sensor Finance, Nicolette Maree, +27 (0)21 808 1635, firstname.lastname@example.org
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