Sensor supports asset rentals

October 2015 Financial (Industry)

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 financed security technology for 2RM Security at the premises of SAB Newlands.
Sensor Finance financed security technology for 2RM Security at the premises of SAB Newlands.

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, [email protected]

Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Proactive strategies against payment fraud
Financial (Industry) Security Services & Risk Management
Amid a spate of high-profile payment fraud cases in South Africa, the need for robust fraud payment prevention measures has never been more apparent, says Ryan Mer, CEO of eftsure Africa.

Understanding the power of digital identity
Access Control & Identity Management Security Services & Risk Management Financial (Industry)
The way we perceive business flourishing is undergoing a paradigm shift, as digital identity and consumer consent redefine the dynamics of transactions, says Shanaaz Trethewey.

Protect your financial assets from unknown online threats
Products & Solutions Information Security Financial (Industry)
Malicious actors employ a myriad of sophisticated techniques, such as hacking, phishing, spamming, card theft, online fraud, vishing, and keylogging, among others, to exploit unsuspecting individuals and gain unauthorised access to their financial resources.

Is AI the game-changer for streamlining anti-money laundering compliance?
Financial (Industry) Security Services & Risk Management
In the aftermath of South Africa's recent grey listing, companies are now confronted with the imperative to address eight identified strategic deficiencies, while simultaneously reducing their financial crime risk through anti-money laundering compliance processes.

FutureBank and IDVerse partner to fight cybercrime
Information Security Financial (Industry)
Generative AI is breeding different fraud types, and cybercrime is predicted to become the biggest economy in the world in the next 18 months. FutureBank and IDVerse have joined forces to keep their customers safe.

Capitec installs Speedgate turnstiles
Turnstar Systems Financial (Industry) Access Control & Identity Management Products & Solutions
Capitec’s Head office in Cape Town recently took its security measures to the next level with the installation of three Speedgate secure lanes manufactured and installed by Turnstar Systems.

Banking the unbanked comes with security risks
Financial (Industry) Security Services & Risk Management
As grim as it was, the pandemic of recent years and its resultant global economic crisis were a prime catalyst for record number of first-time bank users, the previously unbanked.

Combating South African financial crime with RegTech
Financial (Industry) Security Services & Risk Management
RegTech South Africa is an emerging and dynamic industry with new regulations being consistently added and the need for compliance being more important than ever. With the recent Greylist announcement of South Africa, by FATF, compliance with international standards and regulations cannot be ignored.

Integrating existing technology and AI
Secutel Technologies Financial (Industry) Access Control & Identity Management Products & Solutions AI & Data Analytics
Financial institutions require strict security processes governing staff and visitors (including unwanted visitors), from the perimeter, right into their campuses and buildings; however, replacing all existing security systems with new technology is not always viable.

Smart remote monitoring
Financial (Industry)
Thorburn Security Solutions provides a smart remote monitoring and cost-effective solution that will increase efficiency and, most importantly, mitigate risk.