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Advantages for clients
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Disadvantages for clients
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Scalable or operational rental
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- borrowing capacity and cash flow unaffected
- Scalable solution
- Takes into account obsolescence of equipment
- Simpler administration and accounting
- Current use value different to market value
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Financial leasing
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- Non-scalable solution / Rigidity of
durations
- Obligation to sell the equipment at the end
of its useful life
- Impact on balance sheet (increases
liabilities)
- VAT paid upfront
- Depreciation of equipment
- No financing of services or software
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Outright purchase
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- Simple, immediate operation
- Financial independence integrated in the
same investment capacity
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- Immobilises equity
- Rigid, non-scalable solution
- Loss on re-sale, VAT paid upfront
- Obliged to deal with sale at the end of the
useful life
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