[ANN] RENTA.CITY - Service for long-term lease for B2B & B2C

RentaCity is a smart contract, Ethereum, written using the Solidity programming language. It allows you to issue tokens in Ethereum network and provides a wide range of options.
REC is a token issued based on the RentaCity contract.

No initial tokens issue. A token is created upon purchase and is be credited to the investor's purse. Number of REC tokens produced at each ICO step will be strictly limited and correspond to the intended purposes. The amount of the proposed tokens, as well as rates to Ethereum can be adjusted and set prior to each round of financing, after analyzing of the current market situation and summarizing the results of the previous steps.

The basic rate: 1 token (REC) is equivalent to 1/1000 ETH.

There is no limit on the maximum number of tokens to be purchased by one person. However, the purchase amount may be limited after adoption of the your local laws.

Tokens will be implemented in several stages. RentaCity reserves the right to offer special conditions of sales to the strategic customers and partners.

CONTRACT DATA

Payable Sale contract: 0xb2819a0c3db0b9513a5ddd747f873877f622e083

Token contract: 0x53d1408c021c40936f2734cc6deba197322baffd
Token address: 0x99e7361dd7a1b0850693b37537a44fa167a09138
Token symbol: REC

Sale has started - March 01 2018.
Stage duration: 30 days.

INTRODUCTION

Rental of equipment is a major sector of service industry in many countries. Practice of equipment rental is mostly spread in the USA, United Kingdom and Australia.

Short-term rental is essentially operative leasing, it allows customers to get services for a short period for holding of exhibitions, presentations and other events. The question is not only about presentation or refrigerating equipment, but about construction tools and construction machinery.

The next type of related activity is long-term rental without an option to purchase. While validity term of short-term rental agreement is represented in days and weeks at most, the period for long-term rental agreements is calculated in months. Long-term rental becomes useful for companies starting own business. Such companies are not confident in their future and do not plan to make investments into fixed assets. In this case they deposit free funds into circulating capital.

If the company is confident of its future, it will certainly use such service of financial leasing or long-term rental with an option to purchase.

In general the rental service is demanded among either companies or individuals.
The range of short-term rental services is quite wide– this is rental of sport inventory, clothes for events, audio and video equipment etc. But those are only services for several days and without an option to purchase!

There are no companies in the Russian Federation working under the scheme of rental with an option to purchase in both market segments –B2B and B2C.

CURRENT METRICS

2006 – entry into the market of equipment for retails and Horeca (hotels, restaurants and bars);
2011 – launch of the commission line for dealing with used equipment;
2014 – launch of short-term and Long-term equipment rental (without an option to purchase).

We have our own fleet of equipment (100 units), which is mainly for long term rental (starting from1 month). We are working with legal entities (limited liability companies, individual entrepreneurs) and individuals.
Due to absence of sufficient financial volumes, we implemented the scheme for investors attraction in physical terms. That means, clients provide us their products in trust for their further rent out.
We are monopolist of short-term and long-term rental services in our region and in our market segment.

Parent company site: www.melna.ru

SOLVING PROBLEMS

As we noticed, unfortunately, long-term rent without an option to purchase is not suitable for companies with stable turnover. In this case, they want possibility to transfer rental into ownership or purchase it. Current specifics of the classic leasing companies is that some restrictions are imposed on the range of products, and most importantly, on minimum amount of contract costs, which are often several times higher than the amount of the required funding. That means, there is a dropdown segment of customers with the required financing up to 500 thousand rubles approximately.
We work even with one item of goods, for any period starting from one month, with the option of return and exchange.
We provide service, run stable sales channel for the returned used products. That means, the complete cycle company is implemented!

For proper work even only in B2B segment large amounts are required for initial purchase of equipment. Products are purchased at the manufacturing plants not in advance, but promptly upon the client's request.

The American company Rent-A-Center (rentacenter.com) with about 2,500 stores in the U.S.A., Mexico and Canada can be mentioned as an example of business working in the B2B segment. The company is focused only on the individuals, offering domestic products: from cell phones to refrigerators and furniture. There is a unit for working with franchisee in the North America.

For working on the B2C market it is necessary to develop retail points of service, besides having sufficient amounts for purchase of the goods.

TASKS

Our team does not use the trendy term "decentralization". We understand that at least now it is pointless to create a common platform for services of rental / rental with an option to purchase in our segment of the market. This is due to the different working conditions in each region, personal working environment for each client.

We focus on urgent needs of investors, namely, on their desire to obtain stable profits over a long period of time.

Relying on years of our experience on working in the B2B segment, and borrowing everything significant from foreign projects, we are aimed at implementing the service (RentaCity) for comprehensive customer care in all market segments.

OUR MAIN TASK is to implement and expand firstly the service of long-term rental with an option to purchase for B2B and further for B2C, without abandoning the related businesses.

Thus there is a complete cycle of goods circulation: purchase of goods at dealer prices, long-term lease out with an option to purchase, warranty and post-warranty service, sale of the goods in the secondary market or re-lease in case of early termination of the deed.

To expand activity on trust management of property of investors-landlords, as an additional business line. The scheme has already been implemented and is applied on some contracts.
Agreements are optimized for working with individuals for avoidance of taxation of the landlord on 13% Personal Income Tax.
To expand the range to at least presentation and construction equipment, and to construction machinery at most.
To extend geographical coverage to other regions - primarily in the million cities.
To offer the scheme of franchise work for remote cities and large markets.
To offer p2p functionality on lease/exchange/sale of goods. Separately, this line is not viable, but can work well in the overall ecosystem. In this case our company will act as the guarantor of deals, and in simple form, just as an agent on management over the client's products.

DESCRIPTION OF THE PROJECT

Project mission:

The B2B segment: To provide the business with the chance for equipping and re-equipping of their facilities without using credit funds.
The B2C segment: To enable use of the mass-market products under lease with an option to purchase, return, and, most importantly, free exchange for a new product.
The P2P segment: Services on lease/exchange/sale of goods between our clients, where the platform will act as a catalogue of proposals and the guarantor of deals.

Commercial value to the company:

purchase of products at dealer prices;
regular income from rental payments;
margin from sales of the used goods;
additional supply of associated goods for the facilities against prepayment;
receiving royalties and franchise fees from franchisees;
post warranty service.

Technical part and innovation:

our platform uses blockchain technology based on smart contracts, Ethereum, which makes the company's financial operations completely transparent;
currently the system is implemented on the engine of CS-Cart online store with local accounting system integration. Every product has set parameters: Price of rental per day/week/month, sale price, owner of the product. The product investor will receive payment for actual period of rental. The investor has an account on the web-site, where information about current accruals is placed;
for complex equipment we use trackers for management of supply circuits, and mainly for following the goods via GPS and cellular network towers;
for scaling the project and best integration with local accounting systems we need to redesign the platform software;
adaptation/development of tenant, investor, franchisee offices is required;
mobile client needs to be developed for the tenant and the investor;
increased number of payment options is required.

BENEFITS FOR THE INVESTORS AND THE USERS OF THE SERVICE

Use of the token as an internal bonus units to account for discounts and other benefits to holders of tokens. In case of amendments to the laws of the Russian Federation, tokens may be used as a full-fledged internal settlement unit;
The investor will receive additional revenue from future increases in the price of the token and operating the tokens on the exchange;
The company proceeds on the basis that it attracts money from private and institutional investors and will act in their interests and for them to gain profit. At least 30% of quarterly net profits will be paid out. The company will convert the received net profit into the Ethereum crypto currency on a quarterly basis at the current market rate and distribute it proportionately among all holders of the REC token;
The start date of accruals – start of stage #2.

IN-DEPTH GROWTH PLAN

2018 is determined as the year:
- for establishment of relations with crypto-society in order to enhance confidence to offline-projects;
- for adjusting business lines at the local market.

Since 2019 expansion is planned to markets of major cities of the Russian Federation and neighboring states.
In terms of legal uncertainty of crypto-currencies and financial relations based on them, the company will firstly develop traditional methods of business conduct. In case of improvement of local laws we will be able to assess advantages of new technologies to the full extent.