Information – Leasing market transformation and “full service” contracts

04/06/18

De Gaulle Fleurance & Associés assists finance and leasing companies in structuring and implementing financing models compatible with the ongoing changes taking place in the leasing market.

  Over the last few years, the leasing market has accompanied the global economy in its evolution from a property-based economy to an economy of use in certain sectors. This has triggered a transformation of the leasing market, amplified by changes in user needs and new accounting standards.   Conventional leasing mainly consists of financial lease and operating lease agreements for various types of equipment. As of January 1st 2019, the new IFRS 16 accounting standards will change the accounting treatment of leases.   With the market transformation, tomorrow’s leasing will consist, primarily in the domain of technology, medical, industrial and energy sectors, of “Full Service” contracts relating to equipment fleet management. “Full Service” contracts provide users with access to a full service which includes the use of the equipment, maintenance, servicing, system updates, staff training and end-of-term equipment management (e. g. dismantling, recycling, sale). Users pay rent for a complete service. In some cases, the rent may vary in proportion to the services provided or depending on the options chosen.   Thus, “Full Service” contracts allow users to optimize their balance sheet and tax return on investment.   De Gaulle Fleurance & Associés assists finance and leasing companies in structuring and implementing new financing models compatible with “Full Service” contracts and helps them understand the new constraints that arise as a consequence.   Our expertise   Implementation of new financing models and tailored contractual documentation
  • Definition of financing schemes compatible with “Full Service” contracts (partial assignment of contracts, tri-partite contracts between users, finance/leasing companies and service providers, outsourcing services, etc.);
  • Review of the conditions of involvement by finance and leasing companies in “Full Service” operations, which include variable rents (depending upon the volume consumed/”pay per use”);
  • Drafting and negotiation of “Full Service” contracts including clauses that protect the interests of finance and leasing companies;
  • Drafting and negotiation of “Full Service” contracts enabling users to achieve their objectives and respond to their constraints;
  • Drafting and negotiation of assignment agreements applicable to “Full Service” contracts and service outsourcing agreements;
  • Intersectional approach to legal and tax advice.
  For any information or request we invite you to contact the following people:
Sylvie Perrin Partner Direct line : +33 (0)1 56 64 14 21 Mobile : +33 (0)6 82 57 27 62 E-mail : sperrin@dgfla.com Racha Wylde Lawyer Direct line : +33 (0)1 56 64 00 91 Mobile : +33 (0)7 72 15 77 01 E-mail : rwylde@dgfla.com
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