"Having a world-class office space is truly a win-win situation and the way of the future," said Fintech's CEO, Glen Christopulo. "It means that what has traditionally been seen as a capital expense, now becomes an operating expense - off the balance sheet.
Valuable working capital can be kept for expenses that are going to contribute directly to, rather than drain, a company's revenue; to make hard-working investments rather than non-performing purchases."
Indeed, premium-styled office space has become a key differentiator for forward-thinking businesses: it's an important contributor to brand image and a big part of the "customer experience". Perhaps more importantly, though, the cost of space means that, more than ever, offices must be designed to maximise efficiencies while minimising operating costs as much as possible. Rates, electricity and day-to-day running expenses can all be kept in check with smartly planned office space.
For a long time, outright purchase has been the only way to access a professionally designed fit-out option. Many companies find that in a bid to enjoy the rewards of efficient offices, they cut off a valuable supply of capital, which they would rather direct towards income-generating activities. In a challenging economic environment, it is unpalatable (at best) for business leaders to channel funds into depreciating assets, such as furniture and office automation. As a result, office spaces tend to get neglected and are far down the priority list.
As Fintech's business development manager, Ryan van der Ploeg, pointed out - the benefits of an office rental fit-out add up to a smart solution: "Just as today people are moving towards leasing cars, homes or a photocopier - so enlightened companies are renting their office fit-outs. They don't need to worry about having the cash for a deposit. It's simply a matter of putting a contract in place for the duration of the life of the fit-out. And what's truly clever is that companies are using someone else's capital to fund what is, after all - a depreciating asset."
"Without the need to calculate wear-and-tear allowance and build in depreciation, our clients find that their accounting becomes greatly simplified - freeing them up to do what they do best - their core business," added Van der Ploeg.
