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Frequently Asked Questions

Capital Finance is dedicated to establishing long term relationships with its business customers. Our finance deals are transparent, with no hidden costs during the term or unbudgeted surprises at the end. We don’t just want to win your business. We want to keep it.

Q: What are my end of term alternatives?
A: You have five end-of-term alternatives:

• Extend the rental period.
• Upgrade or replace with new equipment.
• You can make an offer to purchase the equipment at fair market value.
• Return the equipment with no further payments required.
• Or any combination of the above that best suits your requirements.

Q: What if I want to upgrade my equipment during the rental term?
A: That’s OK. We simply adjust the rentals to incorporate the cost of the new equipment. Or, to keep the payments the same, you can establish a new term.

Q: Can I add on equipment to my initial existing rental agreement during the rental term?
A: Yes you can – by executing our variation agreement. This allows you to either:

• Increase the rentals without extending the term; or
• Extend the rental term to maintain a similar quarterly rental as per your existing rental agreement.

Q: Can I cancel the arrangement before the end of the term?
A: If you cancel the arrangement and return the equipment before the end of the rental term, you must still pay for the balance owing. A more cost effective alternative is to upgrade to new equipment and execute a new rental agreement.

Q: What is the effective interest rate?
A: As the arrangement is not a loan, there is no interest rate. You are paying rental for the use of the equipment over a pre-determined period. You are not repaying a loan.

Q: Do you finance any other equipment apart from office technology?
A: Yes - mining, aviation waste, civil construction, manufacturing, transport & logistics, rail, health and education industries.

Q: Are my payments tax deductible?
A: There may be taxation advantages. (Please check with your accountant or financial advisor).

Q: What happens if I damage the equipment?
A: Most equipment is covered by the manufacturer’s warranty (check with your supplier). Beyond that, you are responsible for repairs and maintenance and to keep the equipment in good working order and insured at all times.

Q: What is fair market value?
A: Fair market value is the estimated amount for which an asset should exchange between a willing buyer and a willing seller in an arm’s length transaction after reasonable time and proper marketing.