Ergo - Asset-based Financing
Íslandsbanki Asset-based Finance (Ergo) is a part of Íslandsbanki's Corporate Banking division and specialises in the financing of work equipment and commercial property for companies and the financing of vehicles for individuals.
For customers looking to buy or lease a vehicle the unit offers car contracts and car loans that are particularly well suited to individuals.
With a car loan the customer acquires a loan to purchase the car or recreational vehicle (trailer, camper) in question. With this type of financing the customer is registered as the owner from the start with Ergo having security in the vehicle as guarantee for the loan.
A car contract entails Ergo's buying the vehicle and leasing it to the customer for a predefined period of time. At the end of the contract time the customer acquires the car or vehicle for a residual price. With this option Ergo is the registered owner during the leasing time, however the customer is liable for any tax on the vehicle from the beginning.
Purchase leases and investment loans are tailored to companies and enterprises.
Purchase leases is a form of asset leasing where Ergo purchases the equipment or real estate and leases it to the customer for a predefined period of time. Investment loans are bonds collateralised with the equipment in question.