Cylinder Rental Policy
Cylinder Rental Policy
1. Overview
Kovco (Pty) Ltd operates a cylinder rental system to enhance tracking and accountability of refrigerant cylinders. Each cylinder has a unique serial number, allowing full tracking and verification of rental periods. This system is managed by an independent IT development house, which maintains the rental records and applies a percentage charge on all rentals.
2. Rental Process for Account Customers
a. Customers are invoiced only for the refrigerant.
b. A separate Rental Note is issued, listing the cylinder numbers and the date taken.
c. Rental is charged monthly, invoiced in arrears on or near the first day of the month.
d. A monthly report is provided by the independent IT company, detailing rental charges for each cylinder.
3. Grace Period & Rental Charges.
a. The month in which the cylinder is taken is rental-free (e.g., if taken in January, no rental is charged for January).
b. The following month is also rental-free (e.g., if the cylinder is not returned in February, no rental is charged for February).
c. If the cylinder is still not returned by the end of February, a full month's rental will be charged in March for the entire month.
d. Rental will continue to be charged monthly until the cylinder is returned or reaches the maximum rental period of 44 months.
e. After 44 months, the cylinder is considered written off, and no further rental charges will apply.
4. Cylinder Rental for Cash Sales.
a. A cylinder prepayment rental charge is applied to all cash sales.
b. Upon return of the cylinder, a credit will be issued against the cylinder prepayment rental charge, and the incurred rental will be billed separately.
5. Customer System Access.
The suppliers of the system can provide you with access to the system so that you can on-charge rentals to your customers. There may be a small setup fee, and thereafter, charges will be a percentage of the rental value. You will no longer have cash flow tied up in deposits, with the added benefit of being able to track each and every cylinder that has moved into and out of your warehouse.
6. Refund Policy for Deposits.
a. Existing cylinder deposits are refundable within 12 months of system implementation (1 June 2016).
b. Cylinders returned after 12 months receive a refund minus accrued monthly rental fees beyond the changeover date.