Articles | Business Finance & Advisory Services | Merchant West


A message from our Capital Markets team amidst the Covid-19 Pandemic
23 March 2020

Hi All,

What a difference a few weeks can make. While the South African economy has been struggling for some time, there was still a lot to smile about, most notably, a (relatively) firm Rand. Fast forward to now and the Covid-19 pandemic has led to a world gripped in panic and a Rand that has been in free-fall. In this time, many businesses have been disrupted as we as a collective look to prevent the spread of the virus.

In the interest of looking after the health and well-being of our employees, clients and other stakeholders, we have instituted pre-emptive measures. These measures include, among others, ramping up hygiene measures at our various offices, allowing staff to work remotely where necessary, replacing all internal and external face-to-face meetings with digital ones where possible and cancelling or postponing events.

The TRUE benefits of renting your medical equipment?
17 March 2020

A frequently advertised benefit of equipment rentals is that it is “100% tax deductible.” In actual fact, this is not really a benefit as all CAPEX /equipment spend is 100% deductible.

The real benefit of renting your equipment lies in the ability to accelerate this write down and the subsequent tax deductions.

According to The Schedule of Wear and Tear/ Depreciation Allowances issued by SARS, the full acquisition cost of Medical Theatre Equipment typically qualifies for a 6-year write-off term. This means that If you buy Cash or do an Instalment Sale through your Bank, that asset will stay on your balance sheet until written-off in 6 years’ time.

However, if one opts for a rental or Operating Lease over 3, 4 or 5 years instead, your tax deductions will be automatically accelerated (100% of the monthly Operating Lease spend is tax deductible). Thus, having a significant effect on the actual after-tax Cost of Equipment.

Unlock Your Cash Flow
10 March 2020

In 2007, Merchant West Working Capital Solutions (MWWCS) was founded with a focus on assisting our clients to grow their businesses through cash flow management and planning. Our experienced team currently offers 4 product solutions to our clients which have been specifically tailored to optimise and improve the day-to-day cash flow of their business.

 Our four products are:

RECM & CounterPoint Asset Management
11 December 2019

We are pleased to announce that RECM and Counterpoint Asset Management have reached an in principle agreement to merge their operations. Importantly, the two firms have complementary skills and investment philosophies, and share a similar culture.

The asset management industry in South Africa is highly fragmented. Intense competition and an onerous regulatory environment has resulted in increasing margin pressure. We believe that the even greater depth and reach resulting from our integrated teams, when added to the current compelling performance history in many of the fund offerings, will be of great benefit to all clients.

Smart Office Trends You Can Realise through Asset Finance
16 July 2019

With the rise in smart technology systems, businesses across the globe are implementing this technology within their offices to increase productivity and optimise operations, among other benefits. Now that these systems can be realised through asset finance solutions, more and more businesses in South Africa can join the smart revolution. This empowers South Africans with the opportunity to successfully compete with local and international players in their industry. Read on to find out which smart office systems are currently trending, as well as what benefits they offer to businesses across multiple industries.

Personalised Business Finance Services: A Partnership for Financial Success
18 February 2019

For your business to thrive financially, it needs a committed financial partner focused on providing tailor-made business financial services and solutions specifically suited for your business. Every business is unique, and to this end, every solution, from working capital solutions to financial risk management, needs to be tailor made in order to support and work for your business. At Merchant West, we focus on providing flexible financial solutions that suit your business needs. Our personalised business financial services, which include working capital solutions, asset finance, and financial risk management are geared towards supporting your business’ individual requirements. So, what makes us the perfect match for your business?

Asset Finance for Businesses: Designed for the Ambitious
18 February 2019

There still exist many misconceptions around the term “finance”. At Merchant West we strive to demystify asset finance and promote it as a bespoke solution for businesses to acquire the equipment and systems they need to grow. Finance should not be limited as the misconstrued term it often is referred to, used to simply describe people who cannot afford to buy. The reality of finance is that it is designed for profitable companies that want to become industry leaders, with best-practice financial risk management consciousness. Our asset finance solutions are designed for the ambitious, here’s why:

The benefits of leasing
04 December 2018

Keeping up with technology often means that businesses are budgeting for new purchases each year to continuously refresh their security infrastructure and taking a financial knock on the depreciating asset value of the outdated equipment. At least that has been the case up

until now.

New approaches to security asset financing, such as an operating lease enables the business to implement their security refresh projects, but without purchasing the equipment. This model keeps depreciating assets off the client’s balance sheets, while the supplier can offer their clients fully financed end-to-end solutions they can bank on.

MW Asset Rentals (RF) Ltd – New Rating Accorded and New Issuance Rating Accorded
04 December 2018

Global Credit Ratings (“GCR”) has accorded the following final, public long-term credit rating to the following Secured Class A Notes (“Class A Notes”) issued by MW Asset Rentals (RF) Ltd (the “Issuer”) (the “Transaction”) on 18 November 2016:

● Class A Notes, stock code MWAR01; R450,000,000; AAA(ZA)(sf) Stable Outlook.

GCR concurrently accorded the following finalpublic long-term credit rating to the following Notes issued by the Issuer on 29 March 2018 (“New Issuance”):

● Class A Notes, stock code MWAR02; R300,000,000; AAA(ZA)(sf) Stable Outlook.

The Issuer has increased the Subordinated Loan to R64,645,000 from R44,645,000 that is unrated and held by Merchant West (Pty) Ltd.

Sending Money Offshore
17 November 2016

The South African Reserve Bank allows individuals to transfer their funds offshore utilizing either of the options below:

1. A single Discretionary Allowance of R1 million per calendar year. This allowance does not currently require South African tax clearance, or

2. A Foreign Investment Allowance of R10 million per calendar year. This is an annual allowance and applies to private individual tax payers over the age of 18 years. In order to utilise the Foreign Investment Allowance and to transfer the allowance out of South Africa, a Tax Clearance Certificate from the South African Revenue Service (SARS) is required which is valid for 12 months from date of issue.

Merchant West Capital Markets can facilitate the entire process and assist with the necessary paperwork.

Contact us today for more information or simply visit our website.