Finance Agreement – Financial Lease Agreement
This Financial Lease Agreement is intended for use by a lender that finances goods (such as vehicles, equipment, office furniture etc) for people on a financial rental basis. Provision is made for ownership in the goods to pass to the lessee at the end of the rental period, if this is what the lender and borrower agree. The Pre-Proposal Quotation and Financial Lease Agreement have been drafted in accordance with our interpretation of the National Credit Act.
FINANCIAL LEASE AGREEMENT
With a Pre-Agreement Proposal
(in terms of the NCA)
Summary This Financial Lease Agreement is intended for use by a lender that finances goods (such as vehicles, equipment, office furniture etc) for people on a financial rental basis. Provision is made for ownership in the Goods to pass to the lessee at the end of the rental period, if this is what the lender and borrower agree. The Pre-Proposal Quotation and Financial Lease Agreement have been drafted in accordance with our interpretation of the National Credit Act.
The NCA-required Pre-Agreement Quotation is included with this document.
Why would I need a Financial Lease Agreement? The Financial Lease Agreement may be considered for use when a person finances goods for someone else, on the basis that ownership in the goods may pass to the lessee at the end of the period. For example, giving finance for computers, furniture, audio goods, vehicles etcetera. This Finance Agreement provides for the payment of a rental for a specific term with regular payment obligations.
Before signing this agreement, the financier is advised to conduct a comprehensive financial and credit check on the borrower, and get the borrower to complete a separate application form for a credit facility.
What does the Financial Lease Agreement say?
The Pre-Agreement Proposal addresses: Description of goods; Finance details; Finance term; Rental; Residual value.
The Financial Lease Agreement addresses: Definitions; Suspensive Conditions; Lease of Goods; Delivery and Risk; Insurance; Security; Use; Fees and Charges; Interest; Rentals; Early termination; Customer warranties and undertakings; Default; Consents; Delivery address; General.
How long is the Financial Lease Agreement? The Pre-Agreement Proposal can be printed onto three A4 pages, and the Financial Lease Agreement can be printed onto ten A4 pages.
What do you need to do to use the Financial Lease Agreement?
- Read the template documents to ensure that they suit your requirements. Make changes as required.
- Complete the relevant details in the Pre-Agreement Proposal and the Finance Agreement.
- Ensure that the documents are signed by both the financier and the borrower.
Also viewed: Instalment Sale Agreement
This Agreement is intended for use in cases where the National Credit Act applies. While it has been drafted in accordance with our interpretation of the legislation, we recommend that you obtain independent advice before using a Financial Lease Agreement. Agreements Online will not be liable for any damages you may suffer due to non-compliance with any regulatory requirements.
Synonymous with: Finance Agreement; Lease Agreement; Financial Rental Agreement; Rent-to-Own Agreement; Loan Agreement
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