Asset Finance Quotation System  

 
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Vendor Subsidy

Each item of equipment set up in AFQS Configuration can have a vendor subsidy program associated with it. Unlike the dealer subsidy entered by the user manually, the vendor subsidy is calculated based on the program parameters for the selected item of equipment with the results hidden from the user, if necessary.

The vendor subsidy program consists of the following parameters:

  • Subsidised amount per $1,000 of either equipment cost (if «cost based» parameter is selected) or amount financed
     
  • Subsidy limit as amount and as percentage of cost (if both are specified, the minimum of the two applies)
     
  • Minimum rate to customer
     
  • Subsidy start and end dates
     
  • Cost of Funds term (in months)
     
  • Discount rate (used to quote on if the subsidy limit has not been exceeded and the quote term equals the COF term; otherwise, the normal rate applies)
     
  • Whether the GST component of equipment cost / amount financed is subsidised
     
  • Whether subsidy is calculated based on equipment cost or amount financed
     
  • Whether subsidy is fixed (if selected, the minimum customer rate is achieved by increasing the margin where the original subsidy amount will produce a lower-than-minimum customer rate; otherwise, the minimum customer rate is achieved by reducing the amount of subsidy)

Equipment items with vendor subsidy programs must be always quoted separately, i.e. they cannot be used in multi-asset quotes. However, it is possible to quote both vendor subsidy and dealer subsidy on one item of equipment at the same time.

See also:


GlossaryActuarial Rate of Return (Net Yield)Calculation FunctionsCost of FundsDual Rate of ReturnFinance ComparisonInput Tax Credit (ITC)Internal Rate of Return (IRR)Luxury Car Tax (LCT)Notional ITCNotional ProfitRate PremiumRepayment StructuresTax Loss ExampleTax ShelterVendor Subsidy
Goods and services tax (GST)Luxury car tax (LCT)Luxury Car Tax Rate and Thresholds
Technical Summary
Installation instructions and technical requirements.

User Guide
Explanation of the main user interface features.