Lease management
With more than 10 years’ experience in the professional real estate and moveable lease management sector, MOSAIK accompanies its clients with the setup of the financial method, with innumerable benefits.
What is lease management?
A company or a professional uses equipment without being the owner. Therefore, there is a legal and accounting dissociation between the ownership and the use of the equipment. It is not the patrimonial value of the equipment that counts, but the cost of its use, including the amount of the rent, compared to its financial yield.
The lessee shall select its supplier and equipment at its discretion and shall negotiate the price. The equipment is ordered from the supplier who shall deliver it to the lessee and invoice the lessor. The lessor rents the equipment to the lessee for an agreed duration and rent.
Whether it is in the form of lease management or financial lease, the lease financing is a three-party operation between a company or a professional, who shall be the future lessee, a supplier and the lessor.
Nonetheless, unlike the financial lease, the lease management agreement provides, from the outset, the option for the lessee to purchase the equipment (“purchase option”) at the end of the agreement, for a defined price.
The difference between the lease management and the lease with a purchase option: the two terms are often used interchangeably. The difference is the possible termination on the anniversary date of the agreement.
The lease management and financial lease may apply to any type of profession:
- companies,
- artisans and retailers,
- farmers,
- liberal professions,
- administrations and public bodies,
- associations.
MOSAIK accompanies its clients with the setup and enforcement of the lease management agreement and advises them concerning the setup of guarantees likely to be requested by the bank and finance institutions.
What guarantees may be requested?
The possession of the legal ownership of the asset by the specialized financial establishment and its expertise on the equipment enables a limitation for the request of complementary guarantees. Such guarantees shall often take the form of a deposit.
Furthermore, the lease management and financial lease are eligible for the BPI guarantee for agreements of two-year duration or more.
MOSAIK also has a specific judicial expertise concerning all types of litigation that may occur during the enforcement of the lease management agreement or upon its termination.