Financing your business > Vehicle and asset finance > Capital equipment Overview Capital equipment Fleet management   Capital equipment offers you the following options: Private use We finance all types of capital equipment for companies and close corporations. We specialise in the financing of the following types of equipment: Light, medium and heavy vehicles Earth moving equipment Plant and machinery Aircraft We can finance the above equipment by means of: Allowance leases (inventorised leases) Conventional leases Installment sale agreements Suspensive sale agreements. Allowance lease An allowance lease is a financing facility whereby ownership resides with Standard Bank Vehicle and Asset Finance. As ownership is not of importance to the client but rather the use of the asset the client pays a monthly rental for the use thereof. Ownership is, however, possible. Benefits: Due to the tax benefit that Standard Bank Vehicle and Asset Finance enjoys, a lower than normal interest rate can be awarded to the client 100% financing of the asset can be arranged Reduces pressure on the client's cash flow The rentals payable are tax deductible as long as the equipment is used for business purposes Financial leases Conventional leases are the same as allowance leases with the only difference being that the interest rate advantage is not available Benefits: 100% financing of the asset is available The client can acquire capital equipment without utilising working capital The rentals payable are tax deductible as long as the equipment is used for business purposes A lease provides a hedge against inflation Instalment sale An instalment sale, formerly known as hire purchase, lets you purchase an asset and pay for it over an extended period. Ownership Once the asset has been fully paid up, ownership passes automatically to you. VAT Capitalised up front in the principal debt or payable on commencement in cash. Taxation Car allowance receivers and business users may claim for wear and tear. Interest paid in the tax year is deductible. End-of-agreement options Ownership passes automatically to you. Effect on balance sheet For companies, the asset is capitalised. Financial lease A financial lease allows you to acquire the use of an asset for an agreed period. This option is available to car allowance recipients and businesses. Ownership An ownership option is available on termination. VAT Capitalised up front in the principal debt or payable on commencement in cash. Taxation Rentals are tax deductible for corporate and commercial users. End-of-agreement options Ownership may be obtained at zero value - No VAT is paid. Effect on balance sheet Your business should capitalise the asset in accordance with GAAP. The liability should be reflected on the balance sheet. Suspensive sale A suspensive sale is an instalment sale with the following special features and benefits: No initial payment is required Income Tax benefit Maximum repayment period of 60 months   Disclaimer | Conditions of access | Privacy and security statement