FAQS

We finance up to 80 % of the purchase price excluding VAT.

There are few strict age limits for lease financing. Each case is assessed individually, based on the type and age of equipment and how it is intended to be used.

Agreements can be up to 7 years, depending on the nature of the equipment and its usage.

No, vehicles and equipment that have been damaged are not eligible for financing. 

Yes, we welcome applications from new businesses. Speak with one of our advisors to discuss your options and next steps.

Yes-because we finance almost anything! To qualify, the equipment must typically have a serial number, be portable, non-permanent, and have an active resale market.

If the equipment is under a lease purchase agreement, the contract must be settled first. The lessee will receive a notification regarding the change of ownership, which must be confirmed before the equipment can be sold. If the equipment is financed through a secured loan, the loan must be paid off, and Ergo will then arrange for the release of the lien. 

Applications are typically processed within 1–3 business days after all required documents have been submitted. The sooner we receive all the necessary documents, the faster we can move things forward. 

The contract term for vehicles intended for taxi use is generally shorter than for regular passenger vehicles. this is because taxis are driven significantly more and therefore depreciate at a faster rate.

Yes it´s possible to arrange installments in line with your cash flow, allowing you to pay interest only during months when liquidity is low.

You can make an extra payment at any time in the Íslandsbanki app or online bank:

• Log into the online bank and go to “Loans”
• Select your loan by clicking on the loan number
• Tap the menu icon (three lines) and choose “Extra payment” 
• Tick the box for “Extra payment,” enter the amount, and choose the account you wish to pay from.
• Click “Continue” and confirm using your security number

Not using Íslandsbanki’s online bank? No problem, contact us and we will be happy to assist. 

You can make an extra payment at any time in the Íslandsbanki app or online bank:

• Log into the online bank and go to “Loans”
• Select your loan by clicking on the loan number
• Tap the menu icon (three lines) and choose “Extra payment” 
• Tick the box for “Extra payment,” enter the amount, and choose the account you wish to pay from.
• Click “Continue” and confirm using your security number

Not using Íslandsbanki’s online bank? No problem, contact us and we will be happy to assist. 

Yes-you can pay off the loan in full at any time without penalty.

The Electric Vehicle Grant is available to both individuals and businesses, and is paid directly to the registered owner of the vehicle.

Grants are currently ISK 500,000 for new passenger cars and ISK 250,000 for commercial vehicles. 

The grant applies to fully electric vehicles and hydrogen-powered cars with fuel cells

More info on the Electric Vehicle Grant at Ísland.is.

Apply on Ísland.is and receive the payment within two working days. 

More info on the Electric Vehicle Grant at Ísland.is.

Yes- VAT can be financed. A separate payment will then be due in the month when the VAT is refunded.

The seller issues an invoice to Ergo. Ergo then issues a VAT invoice under the lease purchase agreement in the name of the lessee, which the lessee can record as input VAT in their accounts.

Ergo receives an invoice from the seller which is then issued to the lessee.

You can find the VAT invoice in the online bank under digital documents.

All applications must be accompanied by the most recent annual financial statements or tax return, along with any additional documents as applicable. We recommend contacting one of our corporate advisors, who can provide detailed information on the documents required for your specific application.

We do not send out paper overviews. You can find your payment overview in your online bank under “Electronic documents.”

All payment details are stored under “Electronic documents” in the online bank.

Yes ,you can lower your payment fee by registering your loan for automatic payments in the online bank. You can also contact a service advisor for help. Fees are listed on the Ergo price list..

No, it's not possible to charge loan payments to a credit card.

You can view copies of the company loan documents in your online bank under “Electronic documents.” To find them, select the month in which the loan was issued.

All financed vehicles/equipment must be covered by comprehensive insurance but where you insure it is entirely up to you.

Other machinery and equipment may need other types of insurance so please check the requirements with your insurance company.

You must inform your insurance company immediately if you have an accident or the vehicle/equipment is damaged. If the vehicle/equipment is damaged beyond repair and the insurance company offers you a payout, then we will advise you on what the best course of action might be. Our advisors are happy to assist and discuss the various options.

If the company had a car or lease purchase agreement with Ergo and has just paid it off, you can expect an ownership transfer to be sent to the responsible party for electronic signing.

For the transfer to go through, the vehicle tax must be paid. As the registered user, you should have received an invoice in your online bank.

Once the vehicle tax has been paid, the ownership transfer has been signed, and the car or camper is registered in the responsible party's name, the following can take place:

• A credit will be issued to you by Skatturinn for vehicle tax you have already paid.
• You will receive an invoice for vehicle tax from Skaturinn in your online bank.

When a vehicle changes ownership, the vehicle tax is partially refunded to the previous owner (Ergo), and a new tax invoice is created for the new owner for the remainder of the period. 

We handle the refund process and transfer the credit to you as soon as possible. In most cases, refunds are processed within 15 days of confirmation from the Icelandic Tax Administration (Skatturinn). 

Please see the Skatturinn website for more information.

This is completely normal if the company has just paid off a car or lease agreement with Ergo, registered a vehicle in your name, or sold a financed vehicle.

This is what will happen:

• A credit will be issued to you by Skatturinn for vehicle tax you have already paid.
• You will receive an invoice for vehicle tax from Skaturinn in your online bank

When a vehicle changes ownership, the vehicle tax is partially refunded to the previous owner (Ergo), and a new tax invoice is created for the new owner (you) for the remainder of the period. 

We handle the refund process and transfer the credit to the company as soon as possible. In most cases, refunds are processed within 15 days of confirmation from the Icelandic Tax Administration (Skatturinn). 

Please see the Skatturinn website for more information.

All vehicles are required to pay a kilometer charge.  

For more details, please refer to the Skatturinn.is website. 

The registered owner of the vehicle is responsible for paying the charge. The only exception is when the vehicle is owned by an asset or finance leasing company, such as in the case of taxis, where the user is the is responsible for payments. The tax applies to passenger vehicles and commercial vehicles.

For more details, please refer to the Skatturinn.is website. 

You can report your vehicle’s mileage in two ways:

At Island.is

Through the Island.is app

If the vehicle is under a financing or leasing agreement, the driver or user (umráðamaður) is responsible for reporting the mileage and making the payment. 

It does not apply to standard hybrid vehicles that cannot be plugged in. 

For more details, please refer to the Skatturinn.is website.