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The SIREN number, definition
The SIREN number is a nine-digit identifier assigned to each company or legal entity.
Difference between leasing and rental
The common part: whether in the form of leasing or financial leasing, the financing operation is a tripartite one between a company, which will be the future lessee, a supplier and a lessor.
Unlike leasing, the leasing contract includes the option for the lessee to purchase the equipment (“purchase option”) at the end of the contract for a fixed price.
Players in the credit and leasing market
The French Monetary and Financial Code requires credit institution status to carry out leasing activities on a regular basis. Like banks operating in France, specialised credit institutions are subject to authorisation by the banking authorities.
The vast majority of equipment leasing companies are either subsidiaries of French or foreign banking groups, or subsidiaries of industrial groups that offer financing for the equipment they market.
Tax and accounting treatment
In both leasing and finance leasing, the company is the lessee and not the owner of the asset, so there is no direct impact on the balance sheet. In both cases, the lease payments are an expense for the year and are charged to the company’s operating expenses on the income statement. The immediate impact is a reduction in the amount of taxable income for income tax purposes, in accordance with the tax rules in force.
3 special features :
- The term of a leasing contract may differ, within certain limits, from the tax depreciation period for the asset.
- If the lessee has opted for a higher initial rental charge, this is also tax-deductible under the conditions of ordinary law.
- As the tenant is not the owner of the property, he does not have to pay VAT on its acquisition. He will pay this tax on the rents invoiced to him.
Why choose NovaLend
Novalend has surrounded itself with partners enabling it to provide an independent rental service:
- 100% online
- Transparent : thanks to the rating of your study, you will know its feasibility
- Reactive: you will immediately receive an estimate of your rent and a definitive answer in less than 24 hours.
Use of my personal data
Novalend.com is particularly careful to respect your personal data.
Novalend will not communicate your personal data to any company other than the partners of each service without your agreement.
Finally, Novalend only asks for the information necessary to process your request in the best conditions.
What is leasing?
Leasing allows you to use equipment in exchange for the payment of rent for a fixed period.
How does a rental contract work?
It’s very simple:
1. The hirer chooses his equipment from his supplier and defines the terms of the contract.
2. Novalend analyses the file and signs the contract.
3. The equipment is delivered and installed on the lessee’s premises.
4. Novalend pays the purchase price.
5. Rental payments by the lessee
What is long-term leasing?
Long-term leasing is leasing for a period of between 12 and 60 months. This lease may or may not include associated services such as maintenance or equipment insurance.
Long-term rental is a rental period that can vary from 12 to 60 months. It may or may not include associated services such as maintenance or equipment insurance.
Upgradable leasing allows you to leave the leasing contract early, at the customer’s request, in order to renew the leased equipment under a new leasing contract.
What is pay-as-you-go leasing?
Pay-as-you-go leasing allows you to set a rental charge based on the number of times the equipment is used: the charge corresponds to each time the equipment is used. This means that consumables and services associated with the equipment can be included in the rent.
What are the important elements in the rental contract?
The term, the rent, the frequency of the rent, insurance, maintenance costs and the notice period at the end of the contract.
What type of equipment can I rent?
Novalend has chosen to focus on a rental offer linked to equipment for Industry, Construction and the Environment, but does not rule out making offers on other equipment.
I bought my equipment with my cash, because I was in a hurry to replace my machine. Is it still possible to finance it on hire?
Yes, you can. This is called Sales and Leasback: Novalend buys the equipment from you and then leases it back to you. However, this is not systematic and depends on the equipment and its age.
How can I get a customised rental offer?
By using our online simulator.
What are the advantages of leasing ?
- Leasing is a real sales aid because it gives your customer a real alternative, provided that it is fully integrated into your sales methodology.
- You keep in touch with your customer: either through maintenance, or they will consult you if they have any additional needs during the contract.
- Secure payment: Novalend pays you promptly
When will the order be paid?
Novalend pays you on presentation of the delivery note for the equipment at your customer’s premises.
When does my leasing contract start?
- You don’t have to make an initial contribution, so your cash flow and borrowing capacity are preserved.
- Rent is an expense
- None of the leased equipment appears on the company’s balance sheet, so my borrowing capacity is not reduced. This means that the company’s balance sheet will be lighter: less debt on the liabilities side and no assets.
- No need to manage the resale of the equipment at the end of the lease.
When does my leasing contract start?
You sign a delivery confirmation when your equipment has been installed. This document includes a delivery date. Your rental starts on the 1st day following the delivery date.
When will my rent be deducted?
The rent will be deducted on the first day of the month, with the exception of the first rent, which will be deducted on the day of delivery.
How often will I be charged?
Rent can be paid monthly, quarterly, half-yearly or even annually, allowing the lessee to tailor his or her repayment costs to his or her turnover.
Are there any additional costs apart from my rental?
Your equipment must be insured before the start of the rental period. Novalend will provide you with a proposal for the insurance of the rented equipment in your contract, if you have not already identified an insurance policy.
When will I receive my equipment?
The only deadline is the supplier’s: as soon as your rental contract is signed, the order is placed with the supplier.
Can I terminate the hire contract?
In principle, early termination of the hire contract is not possible. However, if the customer finds a third party to replace him/her within the contract, Novalend undertakes to analyse the request.
What happens at the end of the lease?
At the end of the contract, the hirer can :
- return the equipment
- renew before the end of the contract to hire more recent equipment
- continue to hire the equipment
How can I find my contracts?
By logging on to the “Login” tab.
Will I own my property at the end of the lease?
A Residual Value is determined when the contract is signed. Payment of this at the end of your lease enables you to purchase the asset.
If I have a deposit to finance my new equipment, is it better to finance it with a lease or a conventional loan?
Leasing offers a number of advantages: deductibility of rental payments, no VAT advance, simplified administrative formalities and optional additional insurance.
The contribution can be used to increase the 1st instalment (within the tax limits), which reduces the capital to be amortised and lowers the overall cost of the finance.
I’m leasing a new machine-tool. Will you take over my old machine?
No. However, if the chosen supplier takes back your old machine, the amount of the trade-in can be included in the 1st instalment (provided it remains within the tax-allowable thresholds).
My usual supplier gives me a discount on the price of the equipment. Can I take advantage of this if I finance my equipment with a lease?
Yes, if this discount is explicitly stated on the invoice provided, as well as on the final invoice made out to Novalend.