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Leasing FAQ

Please Note: In this guide we use the term "equipment" to denote the assets being financed which may include hardware, software and any ancillary products.

Part 1 - About the agreement

Q. What exactly is a Grenke Leasing Lease?
A. It is a contract between you and Grenke for the hire of equipment that you have chosen through PropertyPro.  PropertyPro provides you with the equipment, Grenke pay the invoice and you pay them regular rental payments for its use over an agreed period.

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Q. Who are Grenke Leasing?
A. GRENKE LEASING is Europe's leading independent supplier of leasing solutions for customers of business technology resellers; Grenke Leasing does not deal direct with end customers. Established in Germany in 1978, the group now operates in 13 countries. Grenke is a quoted company and not connected to any other institution or corporation. In the UK, Grenke Leasing provide national coverage supported by a team of field sales people based in all regions.

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Q. How long should the hire period be?
A. The hire period should be no longer than the expected useful life of the equipment you are hiring. The maximum period we will offer on an agreement is normally determined by the type of products to be hired. As a guide, the maximum period for computers and software is 3 years and telecom products 5 years, although we will consider up to 7 years for some telephone systems.

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Q. What happens at the end of the hire period?
A. These agreements are designed to provide flexibility over the life of the contract where benefits are mainly in the use of the equipment. Grenke will retain ownership of the equipment, but you will have the option to extend the period for up to 6 months if required.

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Q. How frequently do you require payments?
A. Most people make quarterly payments, but generally you can pay monthly, quarterly, half-yearly or annually. Grenke's standard requirement is for payments to be made in advance by direct debit.

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Q. Can I change the payment frequency after the Agreement has been signed?
A. Under some circumstances, it is possible to alter payment frequency, though there would be a fee associated with this request. The new regular rental required would be quoted to you before any change is made.

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Q. When are my payments due?
A. Rentals under the minimum period commence on the first of the calendar month or quarter following the delivery of the equipment. Daily rentals are payable for the intervening period between the delivery date and the commencement of the minimum period.

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Q. Are the payments fixed for the period of the agreement?
A. The basic rentals are not affected by fluctuations in interest rates. VAT will be charged at the rate applicable at the time rentals are due. If there are any changes in taxation or writing down allowances during the period of the agreement, Grenke may vary the remaining rentals to leave them in the same financial position they had assumed at the beginning.

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Q. Can I change my mind after signing the agreement?
A. The duty to consider the contract in full before signing an offer for finance is on you. Once delivery takes place, the early termination rules, as stated in the agreement terms and conditions, apply. There is no cooling off period. You must notify Grenke immediately if you decide not to proceed with the hire agreement before delivery, but that does not affect your obligations to PropertyPro under the order you will have placed with them.

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Q. Can I end the agreement before the end of the minimum period?
A. Assuming your payments are up to date, you will need to give Grenke three months notice, return the equipment and make a single termination payment as laid down in your Agreement. This will consist of rentals still left to go, minus an early settlement discount. A written quotation can be provided on request. Grenke's calculations are in accordance with industry guidelines.

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Q. What proportion of my rentals can I claim against tax?
A. Under hire agreements you can claim the full amount of rental payments against taxable profits in calculating your tax liability for each year.

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Q. Are these agreements covered by the Consumer Credit Act?
A. If you are a sole trader or partnership the agreement will be a Regulated Hire Agreement and subject to the provisions of the Act. This does not apply if you are a limited company or other corporate body.

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Q. What are next steps to apply for a lease?
A. Fill in the application form and submit it to PropertyPro - in most cases we will have a decision within 20 Minutes. Once the lease has been agreed the contract will be sent out, signed and returned, then PropertyPro will dispatch the equipment

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Part 2 - About the equipment

Q. Who is responsible for insuring the equipment?
A. As soon as you take delivery of the equipment you are obliged to insure it against loss or damage. You are also liable for third party risks, including loss, damage or injury to persons or property. Grenke may ask you for proof of equipment insurance and if you do not have any, arrange it on your behalf. The premium would then be charged along with your rentals.

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Q. What happens if the equipment is stolen or damaged?
A. If the equipment is stolen or damaged you should deal with this through your insurers in the usual way (unless Grenke have arranged equipment insurance on your behalf then we would process your claim). You must tell Grenke as soon as possible if loss or damage occurs. If you make an insurance claim that results in the equipment being replaced, then this new equipment will belong to Grenke.

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Q. What do I need to do about guarantees?
A. If you want any warranties or guarantees for the equipment, its maintenance or suitability for its purpose, you must obtain them from PropertyPro.

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Q. What about maintenance of the equipment?
A. You are required under the terms of the agreement to make sure that the equipment is taken proper care of and used in accordance with the manufacturer's instructions.

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Q. Who should I contact if I have a problem with the equipment?
A. Grenke can only deal with queries related to your lease agreement. Queries regarding the operation/maintenance of the equipment should be directed to PropertyPro. Grenke will give reasonable assistance in helping to resolve any dispute but it must be clearly understood that we are not responsible for the choice of equipment.

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Q. How do I obtain equipment supplies?
A. Your agreement with Grenke does not include the provision of consumables or other supplies and these must be obtained from PropertyPro.

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Part 3 - About changes in circumstances

Q. What happens if I move premises?
A. The equipment is owned by the Finance Company and so you will need Grenke's agreement to move it. Therefore, you should notify them with the details as soon as possible before the move and they will process the request for transfer to a new site. The equipment may not be moved outside of the UK.

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Q. What happens if I sell my business or want to transfer the equipment to someone else?
A. Grenke can affect a transfer by entering into a new agreement for the remaining minimum period, provided the proposed new hirer passes their credit checks. Grenke will charge an administration fee to cover our costs.

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Q. Can I change or add equipment before the end of the minimum period?
A. Grenke can usually accommodate changes to the original equipment, subject to credit approval at the time. Contact PropertyPro to discuss your requirements and obtain a quotation for the amended rentals which would apply.

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Q. What if I cannot meet the payments?
A. Obviously you will be under an obligation to make payments to Grenke when they are due. If you do not, they will make a late payment charge for each month that you do not make a payment on time.

If you are having problems please contact Grenke as soon as possible and they will see what they can do to help. If you remain in default of your obligations, Grenke will have to take the equipment back (subject to statutory provisions) and you will be liable to pay them compensation.