1. Why should I lease instead of paying cash?

Simply its a matter of Cash Flow, Preservation of Capital and Tax benefits. If your business is outgrowing its present plant and equipment resources, then why not replace it with new equipment, capable of coping with the growth output. The answer probably is that while you have the cash flow, you do not have the capital to make the necessary purchases. Leasing could be the solution to your problem. When the taxation benefits are taken into account, leasing can be a more cost effective method than purchasing.

2. How do I qualify for a Lease?

Approval criteria is simple and is guided by the following:

3. If I qualify, what do I do?

Read the questions and answers 4 to 14 to satisfy yourself that this is what you need and we will take care of your requirements.

4. What do I want to lease?

To start with we can give you a few ideas:

....there are many more, just ask.

5. What term and residual should I take?

You have the choice of a term between 24 months and 60 months (a longer term is subject to further consideration). Residuals can be as low as $1.10 but generally speaking it should be set at the estimated value of the equipment at the end of the term. Nevertheless you should seek your accountants advice.

6. What happens if the equipment doesn’t perform to expectations?

Before delivery and the signing of a lease agreement you should inspect the equipment and satisfy yourself that it is in good operating condition as you will be unconditionally obligated to pay all lease payments due for the entire term of the lease no matter what happens.

7. Should I take out warranty or a service contract?

If warranty or a service contract is available then you should consider taking it for the term of the lease. The cost can be included in the lease and paid on a service certificate provided by the supplier of warranty or service.

8. Will my lease payments increase during the term?

Payments are fixed for the term of the lease. The only variation will be for late payments when an overdue charge applies. This charge if any will be added to your residual when due.

9. What happens if I want to payout the lease before the end of the term?

You can payout the Lease by requesting for a payout which when given will include a discounted value. As a guide, payouts will be more beneficial to you half way or further into the term of the lease, as early termination in the early years of the lease may be fairly large.

10. What if I want to upgrade to new equipment during the term?

That's OK. At this stage we simply adjust the payments to incorporate the cost of the new equipment and establish a new term. It’s more cost effective if you upgrade after you’re about two thirds of the way through the term.

11. Are my lease payments tax deductible?

Yes. Up to 100% depending on the proportion of usage for business. It would be advisable to check with your Tax Advisor.

12. Should I insure the equipment?

Yes. You must arrange and keep the equipment insured against fire, theft, and accidental damage or any other normally insured risks for its full replacement value during the agreed term of the lease agreement. You must ensure that Wide Bay Australia Mini Lease Pty Ltd is named as lessor under any policy.

13. What happens if I lose the equipment or find it damaged?

You are to make a claim under your insurance policy with proceeds to Wide Bay Australia Mini Lease Pty Ltd, any shortfall on payment will be your responsibilty.

14. What else should I know?

A lease is a non cancellable agreement. You are unconditionally obligated to pay all payments and other amounts due for the entire Agreed Term no matter what happens, even if the equipment is damaged or destroyed, if it is defective or if you can no longer use it. The Lease Agreement cannot be cancelled or terminated except with the agreement of the Lessor and acceptance of its conditions.

15. Now I’m happy with all of the answers, what do I do?

Ask for a quotation by giving us the following information:

Upon your acceptance of our quotation we will send you an application for completion and return. Upon approval of your application we will phone and personally advise you as to what is now needed to prepare the lease contract.

Simply, we will ask you to do the following:

We will then prepare documentation for execution by you. Upon its return and acceptance by us we will then make payment to the supplier of the equipment and request delivery to you.