Frequently Asked Questions

How does an operating lease work?
What happens at the end of term?
Can I upgrade my equipment during my rental / operating lease term?
Can I add extra equipment to my rental agreement?
Can I cancel the arrangement before the end of the term?
What is the effective interest rate?
Are my payments tax deductible?
What happens if the equipment is damaged?
What types of equipment can I arrange finance for?

How does an operating lease work?
Step 1) Choose the equipment you would like to purchase
Step 2) Contact Tech Finance and obtain your finance approval
Step 3) Use your normal procurement process to obtain the goods
Step 4) Provide Tech Finance with the details of your supplier
Step 5) Take delivery of the goods
Step 6) Commence your operating lease.

What happens at the end of term?
You have five end-of-term alternatives:

• Extend the rental period.
• Upgrade or replace with new equipment.
• 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.

Can I upgrade my equipment during my rental / operating lease term?
Yes you can! Contact us to discuss how you can 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.

Can I add extra equipment to my rental agreement?
Yes you can. Simply contact Tech Finance with details of the new equipment. We can arrange 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.

Can I cancel the arrangement before the end of the term?
Yes, but cancellation of a rental contract in its first term requires you to pay for the balance owing. A more cost-effective solution is to upgrade to new equipment and execute a new rental agreement.

What is the effective interest rate?
An operating lease and rental are known as interchangeable terms, as the arrangement is not a loan but a "rental" so 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.

Are my payments tax deductible?
Yes - up to 100% depending on the proportion of usage for business purposes (please check with your accountant or financial advisor).

What happens if the equipment is damaged?
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.

What types of equipment can I arrange finance for?
Tech Finance can arrange finance for a wide range of equipment, including computer software and hardware, furniture, machinery, motor vehicles, security systems, point-of-sale systems, kitchen equipment, etc.