Trade

What is leasing?

A company or professional uses equipment without owning it. There is therefore a legal and accounting dissociation between ownership and use of the equipment. What matters is not the asset value of the equipment, but its cost of use, including the amount of rent, compared with its financial return.

The lessee is free to choose the supplier and the equipment, and to negotiate the price. The equipment is ordered from the supplier, who delivers it to the lessee and invoices the lessor. The lessor rents the equipment to the lessee for an agreed period and rent.

Whether in the form of leasing or financial rental, lease financing is a tripartite operation between a company or professional, who will be the future lessee, a supplier and a lessor.

However, unlike financial leases, finance leases provide the lessee with the option to purchase the equipment ("purchase option") at the end of the contract for a fixed price.

Leasing and rental with purchase option (LOA) are often confused. The difference lies in the fact that the contract can be terminated on its anniversary date.

Leasing and financial rental are available to all types of players:

• companies,
• craftsmen and retailers,
• farmers,
• liberal professions,
• administrations and public authorities,
• associations.

MOSAIK assists its clients in setting up and executing their leasing contracts, and advises them on the guarantees that may be required by banks and financial institutions.

What guarantees can be requested?

The specialized financial institution's legal ownership of the asset and its expertise in the field of equipment limit the need for additional guarantees. These can take the form of guarantees, for example.

In addition, leasing and financial rental are eligible for the BPI guarantee for contracts lasting more than two years.

MOSAIK also has extensive legal expertise in all types of disputes that may arise during the performance or termination of leasing contracts.