FAQs for Business Customers
The basics
Does Smart Ease offer payment solutions for residential projects?
No. Smart Ease is a dedicated commercial funder, which means we only offer payment solutions for organisations such as businesses, schools and other organisations, including not-for-profit.
Which equipment, technologies and services do Smart Ease payment solutions cover?
Smart Ease specialises in funding smart and energy-efficiency technologies, equipment and related professional services.
This includes solar and storage, electric vehicle charging, water heating and purification, heat pumps, efficient lighting, voltage optimisation and Power factor, chillers, boilers and HVAC, power generators, communications equipment, AV and multimedia systems, security and monitoring systems, and building automation.
What are the advantages to funding my equipment with Smart Ease instead of my bank?
Smart Ease offers competitive rates, a simple online 4-minute application process and significantly faster approvals than banks do. As a specialty funder, we assess applications using different criteria from the banks. We use technology to enable fast decisioning. Checks and balances are built into our digitised platform, which means we can approve applications faster.
How much do I need to pay upfront?
There are no upfront costs associated with any Smart Ease payment solutions. Your costs are split across the duration of your Payment Plan and are typically payable monthly.
What is the duration of a Payment Plan?
You can choose the length of time that suits your business based on the monthly instalments.
- For energy agreements, Smart Ease Payment Plans are typically 2−10 years.
- For smart equipment and technologies, Payment Plans are up to 5 years.
Will the monthly Payment Plan instalment amount change over time?
No. Once equipment is installed and settlement occurs, your payments are locked in for the term of the Payment Plan. Interest-rate rises will not affect the monthly instalment amount.
Can I apply directly to Smart Ease for a Payment Plan?
No. Businesses can only apply for a Smart Ease Payment Plan via one of our Accredited Channel Partners. If you’d like to be connected to a Smart Ease Channel Partner for help with your commercial energy-efficiency or smart-tech project, head to the Find an Installer page and we’ll put you in touch with a supplier in your area.
Our payment solutions
Payment Plans
Which payment solution is right for me?
Choosing the right payment solution depends on a few factors including:
- the type of equipment
- how you want to manage your payments, and
- what works best from a tax perspective for your business.
We offer two types of Payment Plans – Rental and Chattel Mortgage (or Loan). These typically suit customers who don’t want to pay upfront, preferring to pay in manageable monthly instalments over a term (from 2−10 years).
For Rental Plans, we also offer the option to add on ongoing equipment servicing following a Subscription model.
What’s the difference between a Rental Payment Plan and a Chattel Mortgage Payment Plan?
The main differences lie in who owns the system and how the purchase is treated for tax purposes.
With a Rental, Smart Ease owns the equipment for the duration of the Payment Plan. You can offer to buy it at the end of the term. This is typically a fully tax-deductible operating expense.
With a Chattel Mortgage, your business owns the equipment. You may be able to claim the interest and depreciation on the equipment as a tax-deductible expense.^
What is a Subscription Plan?
A Subscription Plan works like a Rental Plan but with the addition of ongoing system monitoring and scheduled maintenance for the life of the agreement.
This is covered in a separate Service Agreement between the customer and their preferred installer.
It’s suited to customers who want peace of mind that their equipment is working at optimal levels.
Benefits of payment solutions
What are the business benefits of paying for equipment using a payment solution?
Smart Ease payment solutions enable businesses to get equipment without tying up capital. Pay nothing upfront and instead pay manageable monthly instalments (which helps with cash flow).
Specific benefits vary according to the payment solution, but all include freeing up capital so you can direct it towards other growth or business opportunities. Put your new equipment to work immediately while deploying your capital elsewhere.
How can installing solar and energy-efficiency equipment using payment solutions be a cash-flow positive investment?
If you’re investing in solar or energy-efficiency equipment, your electricity costs will be lower as soon as your system is installed − often by up to 60%^. Most of the savings on your electricity bill can be used to offset the Payment Plan instalments, which makes the purchase cost effective.
Can I write off my smart, solar and energy-efficiency equipment as a tax deduction?
Depending on the payment solution you select, your equipment may be a fully tax-deductible operating expense, or you may be able to claim interest and depreciation expenses at tax time.
Always speak to your accountant to determine how tax benefits apply to your specific situation.
Getting started
How quickly can we apply and get approved for a Smart Ease Payment Plan?
Applications and approval for Smart Ease Payment Plans is fast and easy. You can apply online in just four minutes and, in most cases, get instant conditional approval for a Payment Plan valued up to $150k with no financials.*
Once you’ve signed the Payment Plan agreement, formal approval typically takes place in as little as 5-minutes (but can take up to 24 hours). For Payment Plans more than $150k, formal approval is usually between 24 and 48 hours.
What’s the process for getting equipment on a Payment Plan?
It’s a simple four-step process.
First, complete our simple online form to apply and sign, and receive instant conditional approval for a Payment Plan up to $150k.*
Next, sign your Payment Plan agreement and the project is formally approved.
Your equipment will now be supplied and/or installed. Smart Ease will pay the supplier up to the agreed amount within 24−48 hours.
Finally, pay your Smart Ease monthly instalments for the term of your Payment Plan. For Rental Payment Plans, you’ll have the option to buy the equipment outright at the end of the term.
* Subject to holding an NZBN for 2+ years and other credit criteria and approval.
Other considerations
What is an Internal Rate of Return? How does this apply to my Payment Plan purchase?
The internal rate of return (IRR) is a tool used in financial analysis to estimate the profitability of potential investments. It defines the amount of profit your business will gain by investing in a project or equipment as a percentage. For example, an IRR of 12% means you’ll make a profit of 12% per year on any funds invested in the project.
Most solar systems have an IRR of 12-16% in New Zealand, not taking into account any operations, maintenance or insurance costs.
It’s often harder to determine the IRR for smart tech. Cost-savings to consider are:
* savings on the repairs and troubleshooting of outdated technology
* reducing or eliminating fees for consultants and/or equipment hire, and
* avoiding lost productivity due to inefficient tools.
What is the typical payback period for solar and energy-efficiency equipment?
Payback period (PBP) is the time in years which it takes for the cash flow from a particular project to cover the initial investment. The shorter the payback period, the better.
For a typical commercial system, when the full cost of the system is paid upfront, the average PBP is around 6−8 years. This is highly variable depending on the size of the system and the percentage of solar that the business is able to consume.
However, with a Smart Ease Payment Plan, there’s no PBP in the typical sense, because there’s no upfront cost. The cost of your investment is paid in instalments over the duration of your Payment Plan, most of which is offset by the savings you make on energy bills.
Can my business transfer this Payment Plan to another entity?
We understand that circumstances change. If you sell or otherwise move on from your business or premises, you may be able to novate your Payment Plan (subject to a fee^^ and credit approval of the new entity).
What happens if we need to terminate the agreement early?
All of our agreements are fixed-price contracts, i.e. a contractual agreement with a predetermined value for the goods or services provided. If you need to terminate your agreement early, please contact us to provide an early-termination payout figure.
Ready to know more?
* No financials or landlord waivers are required for transactions of less than $150,000 ex GST. Conditions apply.
** All applications to Energy Lease Pty. Ltd. trading as Smart Ease are subject to normal approval criteria, and terms and conditions apply.
^ The information is not an expression of opinion or recommendation and does not constitute financial, accounting, taxation, general or personal advice and should not be relied upon as such. Savings are indicative only and depend on several factors. Your solar specialist can discuss this with you. Energy Lease Pty. Ltd. trading as Smart Ease accepts no liability or responsibility for any actions or inactions from third parties, including but not limited to equipment suppliers and installers.
^^ $750 plus GST at the time of publication; subject to change.