TrueRent has expanded its rental and leasing finance portfolio with a salary sacrificing offering for resellers.
The new program can be applied to notebook computers, PDAs and or select IT items exempt from fringe benefits tax (FBT). It ties in with the Australian Tax Office's ruling that IT products exempt from FBT can be paid for out of an employee's pre-tax earnings.
National sales and marketing manager, Jol Sinclair, said it decided to launch a general salary sacrificing product after successfully trialing the offer with a Sydney reseller. The offering allowed independent channel players to give business customers a broader range of financing options, whilst getting a leg in on higher margin sales, he said.
"A reseller may have got into that account by offering like PCs, networking gear or printers. These products can be a hard slog on margins," Sinclair said. "This offering gives them the opportunity to offer higher margin products to the staff."
Employees are required to fill in a single application form and get approval from their employer for the direct debit transaction. They can then order a product from their nominated reseller. Products can be paid for over 24, 36 or 48 months. There is no minimum or maximum customer spend.
There were no size restrictions on the number of employees an organisation retained, Sinclair said.
Similar to TrueRent's existing financing programs, dealers participating in the salary sacrificing program are entitled to a six per cent rebate on sales under $10,000, and 2 per cent for those of higher value.