When and to whom do I have to pay VAT, and at what rate?
Answer: This is down to the specific nature of the contract. In a leasing contract, the VAT is collected on a monthly basis by the leasing agency. The percentage is in line with the national VAT rate and charged on the net instalment. In loan-based financing schemes, the VAT is paid to Krone before or when the machine is collected. The rate is the national rate on the net purchase price. VAT is also paid in rent-to-buy schemes before or when the machine is collected. The rate is the national rate on the accumulated rent-to-buy instalments. The sum is stated on the first page of your rent-to-buy contract.
When are the leasing / rent-to-buy / loan instalments due?
Answer: The first payment within a leasing or rent-to-buy contract is due in the month when the machine is collected. All subsequent instalments are due at the beginning of each month. In a loan contract, the first instalment is normally due 30 days after the loan value has been credited.
How do I get my VAT refunded under a rent-to-buy scheme?
Answer: After you have collected the machine and sent the confirmation of collection to your financing agency, this agency will send you a VAT invoice. This is presented to your Inland Revenue office in the customary manner.
What are the advantages of using KRONE FINANCE to finance or lease equipment?
KRONE FINANCE customers benefit from the fact that the solution will be tailored to your personal budget. Furthermore, the machine and the financing solutions are provided by one and the same company. You are advised by an expert who knows the industry, which saves you time and effort, and of course the attractive rates offered by KRONE FINANCE make good business sense.
Leasing or financing – what’s the main difference?
Customers who seek a financing solution want to own the machine. At the end of the financing period, the machine becomes the property of the customer. KRONE FINANCE offers a choice of contracts that allow you to select the best option: down payment, contract period, the amount of the monthly instalments and possibly a target or final rate are defined in line with your personal requirements. Customers who opt for a leasing scheme merely pay for using the machine. At the end of the contract the leaser can simply choose a new machine.
What is the purpose of the credit check?
Assessing the creditworthiness of an applicant is standard banking procedure and one that forms part of KRONE FINANCE’s duty of care, protecting customers from overburdening themselves with debt.
Is credit from my own bank not always the better solution?
No, it isn’t. First of all, KRONE FINANCE offers attractive rates. In addition, customers who choose to lease or finance have the option of returning the machine to KRONE when the contract expires. No bank will offer you this option. Another important issue is that the investment will not affect your credit line with your bank, so this can still be used for short-term needs or unforeseen situations.
Does KRONE FINANCE offer GAP insurance and what is this?
Yes, it does. Your new machine instantly loses value on the day it is registered. Consequently, it would not be insured to full purchase price if, in a worst-case scenario, your brand-new machine is stolen or damaged to the extent that it has to be written off. This is because your insurance covers only the resale value of your machine, which means its market value at a given time. But the leasing rates do not reflect this rapid loss in value during the first few months after registration, leaving you with the shortfall in the financing scheme. This shortfall is covered by GAP insurance.