FAQ’s

COMMONLY ASKED Questions

WHY WOULD I LEASE MY ASSET?

Leasing provides a cost effective method of equipment acquisition particularly suited to depreciating assets. Leasing allows you to spread the cost of equipment over its useful life enabling you to manage the life-cycle of your assets more effectively

HOW DOES THE LEASE PROCESS WORK?

The leasing process is quite simple. Once you’ve been approved for a lease facility you simply advise your equipment supplier and ask them to invoice Converge Capital. When you have the equipment, Converge Capital will prepare a lease schedule and upon its execution your supplier will be paid. You then commence using the equipment and making your regular lease payments.

HOW IS GST HANDLED?

On an Operating Lease, monthly payments are plus GST.

On a Lease-to-Own Agreement, the full GST amount must be paid up front. Monthly payments are then excluding GST.

HOW DO WE DETERMINE CREDIT WORTHYNESS?

We look at many factors including type of business, length of time in business, your financial contribution and the results of a check with a credit agency.

HOW LONG DOES IT TAKE TO APPROVE?

Lease applications can be approved within one working day of our receiving the completed information.

WHO CAN LEASE EQUIPMENT?

Any company, partnership, organisation, association, school, local Government or entity in business. At present we do not lease equipment to an individual for personal use.

WHAT CAN BE LEASED?

We provide lease financing for a wide range of technology, new and used, including: IT equipment (desktop to enterprise), telephony systems, video conferencing, structured cabling, document solutions, security equipment, camera surveillance and electronic office equipment.

WHAT CAN I INCLUDE IN MY LEASE?

You can include the cost of the equipment as well as the “soft costs” such as maintenance, design, licenses, installation and training.

WHAT IS THE LEASE PAYMENT?

The cost of the equipment and the term of the lease will determine the lease payment. The type of equipment and credit history are also considered in determining the lowest possible payment.

WHAT IS THE LEASE PAYMENT?

The cost of the equipment and the term of the lease will determine the lease payment. The type of equipment and credit history are also considered in determining the lowest possible payment.

WHAT IS THE MINIMUM AMOUNT I CAN LEASE?

Whilst we are happy to consider any amount we generally don’t do leases for equipment worth less than $5,000. There is no maximum amount.

HOW LONG CAN THE SOLUTION BE FINANCED?

Financing terms are anywhere from 12 months to 60 months depending on the useful life of the asset. Generally, we can do an operating lease for up to 75% of the equipment’s useful life and a finance lease all of the assets useful life.

ARE THE LEASE RATES FIXED OVER THE TERM OF THE LEASE?

Yes. The rates do not change.

CAN I ADD TO THE LEASE?

Yes. Initially you sign a master lease. Any further equipment can be added by signing a one-page lease agreement.

CAN I PURCHASE EQUIPMENT AT THE END OF THE LEASE?

At the end an operating lease term you have three options:

  1. The equipment can be purchased at the end of the lease term.
  2. You can continue to lease either on a month-by-month basis or for a new term.
  3. The equipment can be returned with no additional payments due.

 

WHO IS RESPONSIBLE FOR INSURANCE, MAINTENANCE & ALL OTHER COSTS OF OWNERSHIP?

The customer is responsible for insurance, maintenance and all other costs of ownership.

WHAT IS THE INTEREST RATE?

This is determined by the market conditions, term and transaction size.

WHAT IS THE PAYMENT FREQUENCY?

Our default is monthly but we are flexible if this does not suit you. 

WHAT HAPPENS IF I RETURN MY EQUIPMENT EARLY?

The contract terms are number of payments left multiplied by the payment amount. This is the maximum that you will have to pay and there may be some discounts that we can apply for early payment.