Question 1

Do I need to give a personal surety?

Accepted Answer

Yes. As an asset-backed lender, we underwrite against the equipment first — but personal surety from directors is part of every facility. We see this as alignment, not gatekeeping: when the people running the business stand behind the deal, we can move faster and structure better terms. The form and extent of surety are discussed upfront, not inserted later.

Question 2

Will my application show on my credit profile?

Accepted Answer

Yes. We run credit checks at the assessment stage on both the business credit profile and on the directors who will sign as sureties. This is standard for asset-backed leasing and helps us price fairly. We tell you before we run any check, and we don't run anything during the initial qualification call — so a first conversation with us costs you nothing on your profile.

Question 3

What if my business is younger than 24 months?

Accepted Answer

Talk to us anyway. Our standard underwriting works best with two-plus years of trading history, but we structure deals for younger businesses where the fundamentals are right — a strong contract behind you, an experienced operator, an asset that holds its value, or a director track record we can underwrite against.

Question 4

Do you fund used equipment?

Accepted Answer

Yes. For most asset classes we will finance used equipment up to seven years old at term start. Yellow metal and some agricultural plant we go further on a case-by-case basis.

Question 5

Can I settle early?

Accepted Answer

Yes. Your relationship manager can run a settlement quote at any time — there is no penalty for asking and no obligation to proceed. The exact figure depends on your specific rental, so the quote will show you the precise amount.

Question 6

What happens at the end of the rental?

Accepted Answer

The asset returns to us. As the lessor, we retain ownership throughout the rental term and at expiry — that is the legal structure of an operating rental. Most clients renew onto a new rental to keep using the asset; some upgrade to a newer or more advanced one; some return it because the need has passed.

Question 7

What's the difference between operating rental and a financial lease?

Accepted Answer

An operating rental treats the equipment as a rental — your monthly payments are an operating expense, the asset stays off your balance sheet, and you return it at the end of the term (or refinance to a new rental). A financial lease or instalment sale treats it as ownership financed over time — the asset sits on your balance sheet, you depreciate it, and you own it outright at the end. Our standard product is operating rental; we structure financial leases on a case-by-case basis.

Question 8

How does VAT work on operating rentals?

Accepted Answer

VAT is charged on each rental instalment at the standard South African rate (currently 15%). For VAT-registered businesses, you claim that VAT back as input tax in the same period — so the net cash effect is the rental excluding VAT. Always confirm specifics with your accountant, but in practice most VAT-registered clients see no VAT drag on operating rental.

Question 9

Are rental payments tax deductible?

Accepted Answer

Yes. Operating rental payments are typically deducted as an operating expense in the period they are paid, with no separate depreciation calculation. This contrasts with ownership-based finance, where you claim a wear-and-tear allowance over the asset's useful life. We structure the deal; your accountant runs the tax math for your specific business.

Question 10

Which industries do you fund?

Accepted Answer

Most of our book sits across road freight & logistics, construction & plant hire, agriculture & agri-processing, manufacturing & industrial, vehicles & commercial fleet, and quarrying & aggregates. We are equipment-led — if it is a productive asset with a defensible resale market, we will look at it.

Question 11

Do you fund operators outside KwaZulu-Natal?

Accepted Answer

Yes. We fund businesses in all nine South African provinces. Our office is in Pietermaritzburg, but most relationship management happens by phone, email, and WhatsApp. On-site asset inspection is arranged where it materially affects the deal.