Question 1

How is the interest rate determined?

Accepted Answer

Your interest rate is subject to the duration of your contract, the financial characteristics of your business, and he market interest rate.

Question 2

Example calculation Asset Finance

Accepted Answer

This example shows you how Asset Finance (or Financial Lease) works. The percentages mentioned are for illustration purposes only.

Example: Let's say you want to invest in a new truck worth €100,000. You want to activate the asset in your books and eventually become the full owner (economically as wel as legally) of this asset at the end of the term. On May 1st, you take out a financial lease of €100,000 with a term of 5 years. You have taken up the lease on July 1st. The interest rate is 4.00% per annum.

Calculating the arrangement fee
The arrangement fee is 1% of the borrowed amount. You pay 1% * €100,000 = €1,000. This fee is paid at the beginning of the lease term.

Calculating your monthly amount (both monthly interest and repayment)
The monthly amount of a financial lease is a composite amount of interest and repayment that you must pay based on annuity. For a lease of €100,000 with a term of 60 months, the fixed monthly amount is €1,841.65. After paying all 60 monthly amounts, the lease is fully paid off and you become the owner.

Chargefor early repayment

If you want to pay off your asset finance contract early, we charge you an early repayment fee. The fee (early repayment fee) you pay depends on:

the amount paid off, and the remaining duration of your contract
the interest you pay compared to the market interest rate at that time for a comparable loan with the same loan amount and the same term
any individual agreements between us and you.