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> Financing guide > How lease-financing worksHow lease-financing works
THREE PARTIES
Three parties are involved in lease-financing, whether by financial or operating lease:
- the company or the professional in possession of and using the equipment (the lessee),
- the equipment supplier (the vendor),
- the financing body , which provides the financing (the lessor).
THREE STAGES
Lease-financing involves a three-stage procedure:
- the company or professional chooses the equipment they need and negotiates the price with
the supplier of their choice,
- the equipment is delivered to the lessee and is invoiced to BNP Paribas Lease Group,
which becomes the owner,
- BNP Paribas Lease Group rents the equipment to a lessee for a length of time, a “rent”
and an agreed repayment schedule. Payments can be made monthly, six-monthly, annually or seasonally.
TERMS AND CONDITIONS OF THE END OF CONTRACT
The end of a contract depends on the means of financing chosen:
- financial leases provide for a purchase option from the outset. The lessee can take
up this option if they want to own the equipment
- operating leases do not include a purchase action.
Find out more about the end of the contract
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BNP Paribas Lease Group, far more than financing
A comprehensive offer with or without related services :
- from financing products to long-term full service leasing,
- including financial and operating leases,
- flexible leasing solutions,
- and for the manufacturers and their sales networks,
- the Wholesale Finance.
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