FAQ
Frequently Asked Questions
Depending on the asset, there will always be a deposit payable of 10% or more. The client will get the benefit of a reduced rental amount per month factoring in the value of the deposit. At the end of the contract, if there are no arrears on the client’s account, and subject to management's approval, we will transfer the asset to the client by issuing a tax invoice to the value of the deposit. The client will ONLY pay the VAT portion over to us and we will start registering the asset in the client's name. This is where ownership will transfer from Quest Capital Solutions to the client.
The asset belongs to Quest Capital Solutions. Since the asset belongs to us, we will record the asset in our books and depreciate it over the term of the Master Rental Agreement. Only once the asset is purchased from us, will ownership transfer to the client. Only then can clients record the asset in their books.
During the rental period, the client only records the monthly tax invoices in their Income Statement.
The asset belongs to Quest Capital Solutions. Since the asset belongs to us, we claim the VAT on the cost of the asset at the purchase date.
During the rental period, the client can claim VAT on the monthly rental Tax invoices issued to them.
A quote will be issued to the client, factoring in any arrears or any “rouwkoop and liquidation” expenditure. If the client agrees to the purchase price quoted to them, a valid Tax invoice will be issued to the client. Once payment has been received, we will start the process of transferring the asset from our name to the client’s.
If the client no longer wants the asset, the asset will be returned to us. The client is still liable to pay rentals up until the asset can be placed with another client or sold. Any selling costs to get the asset in a condition to be replaced or sold will be charged to the existing client.
At the inception of your Master Rental Agreement, an Amortisation Schedule will be given to the client whereby clients will see the purchase price reduced by the rental amounts paid per month. This is an indication of what will be charged at any given point in time during the rental period. This is just an estimation as the final purchase price is determined by the directors of Quest Capital Solutions who will factor in additional costs such as:
- Any arrears on the customer account
- Repair and maintenance costs
THIS IS BY NO MEANS AN EXHAUSTIVE LIST
The cost of any maintenance on the assets is wholly and solely paid by the client who rents the asset. The client is responsible for the upkeep of the assets and ensuring that annual COFs are performed and license discs are up to date.
The client who rents the asset is responsible to Comprehensively insure the asset(s) at all times. Alternatively, Quest Capital Risk (Pty) Ltd offers alternative Comprehensive insurance solutions.
The client who rents the asset is liable for new registrations, annual license costs, traffic fines incurred, and a Valid Roadworthy Certificate (COF). The asset belongs to Quest Capital Solutions (Pty) Ltd, therefore clients will be invoiced when license renewals are due. Payment confirmation thereof, and a valid roadworthy (COF) are necessary for us to obtain the license discs.
- Credit risk is shared
- Ownership: At the end of the rental term, the client can own the asset(s) - subject to approval by management
- Tax benefits on rental amounts
- Claimable VAT on monthly rental invoices
- Off-balance-sheet liability, which leads to increased Return on Asset (ROA)
- Flexibility: Contracts can be re-structured - subject to approval by management
- Convenience: Clients can trade in or take on any new assets – subject to approval by management
- No lengthy credit applications compared to normal banking applications
- In-house license, registrations and renewal services on behalf of our clients during the rental period (for the client's account)
- Facilitating transfer of ownership on behalf of clients - subject to approval by management
Yes, credit checks are conducted on all new clients who sign the consent form.
Yes, suretyship is mandatory for all new clients. Quest Capital directors will also sign surety on all assets.
A Resolution needs to be drawn up, and signed by all Directors, nominating and authorizing an officer/director/member to sign on behalf of the Company.
- Latest 3 months bank statements
- Most recent management accounts and latest financial statements
- Company Registration Documents / CIPC Documents
- ID(s) and proof of address of Director(s)/member(s)
- SARS Tax Clearance Certificate
- Asset Register – if applicable
- Proof of address of business
- Credit checks will be done