Flexible End of Contract Options
With our range of flexible end of term options – to suit your business circumstances – endings can also be beginnings. If you have an operating lease, you can upgrade your equipment, hand it back to us, or offer to purchase it at the end of the agreement. If you have a finance lease you can pay out the residual amount or continue to rent and use the equipment on a month to month basis until deciding the best way forward. Optionally, with a finace lease, you can “upgrade” and add the residual amount to the new lease*.
Operating Lease Options
- Upgrade to new equipment
If you want to keep your business running on the latest, most advanced technology and equipment, you can simply upgrade the equipment at the end of your agreement.
- Offer to purchase
As you near the end of the lease, you can make an offer to purchase the equipment at a price you see fit which we may accept or reject. If accepted, you must purchase the equipment when your lease expires. GST will apply to the purchase price^.
- Extend the agreement
If you’re not ready to let go at the end of the lease, you can continue using the same equipment on a month to month arrangement. This option allows you to continue using the equipment, while preserving your cash flow and providing tax benefits^. You will be charged a daily cost charge during this period.
- Return the equipment
If you’re done with the equipment, simply send it back to us in the condition detailed in the terms of your agreement.
It is important to contact us to nominate an end of term option prior to the end of the lease. You must tell us in writing which option you choose by 60 days before the end of lease date.
If you do nothing, and until you elect to proceed with one of the above options, the lease will automatically roll-over on a month to month basis and you will be charged a daily cost charge.
Finance Lease Options
- Pay the agreed residual value
Make the final residual amount described on the lease agreement and your business can own the equipment outright.
- Refinance the residual value
Choose to refinance the residual value with FlexiCommercial for ongoing use of the equipment,while preserving your cash flow and providing tax benefits^.
- Return the equipment
Prior to the end of your lease date, return the equipment to us in the condition detailed in the terms of your agreement. You may be required to pay the difference between the amount obtained from the sale of your equipment (being the sale amount less costs of sale) and the residual amount.
It is important to contact us to nominate an end of term option prior to the end of your lease. You must tell us, in writing, which option you choose by 60 days before the end of lease.
If you do nothing, we may (on reasonable notice to you) charge your nominated account with the residual amount at the end of your lease You will then own the equipment.
* All upgrade and purchase options are subject to your agreement and our standard terms and conditions, and all upgrade options are also subject to any internal credit criteria.
^ Tax deductions may apply. FlexiCommercial does not provide legal, tax or accounting advice. See your tax advisor for details.