How does leasing work?

The prospective Lessee selects the equipment, finds the supplier and negotiates the price. Why? Because he knows his own business better than we do and understands the technical requirements of the equipment. He then requests OLE for a lease facility.
On receipt of basic information about the Lessee, OLE will make an offer covering the main conditions of the proposed contract. A satisfactory credit evaluation (carried out by OLE) is a main condition of this offer. The Lessee's acceptance of the offer will enable OLE to proceed with the evaluation.
The credit evaluation is based on information provided by the prospective Lessee about his financial and business affairs. All such information is received in strict confidence and will not be disclosed or released outside OLE. The amount of information needed is dependent on the value of financing required but every effort is made to keep it to a  minimum.
On approval of credit, the lease contract and other documents are signed, asset is insured from an approved insurance company and a security deposit is paid by the Lessee. On completion of all documentation formalities, a confirmed purchase order is issued to the selected supplier for delivery of the equipment to the Lessee on behalf of OLE.
Payment for the equipment will be made by OLE directly to the supplier once the equipment has been delivered to the Lessee and acknowledged to be in good working order.
OLE will normally finance 90% of the cost of the equipment, which means that the Lessee finances 10% from his own resources in the form of security deposit. However, when the need arises OLE can finance 100% of the cost.
In return, OLE will normally charge a monthly rent for the period of contract, which can be up to seven years but will typically be three to five years. The amount of the rent is commensurate with the amount of financing provided with some variation depending on the size of contract and type of asset.
OLE requires the Lessee to be responsible for maintenance and insurance of the equipment. However, for the convenience of the Lessee, OLE can arrange the insurance and incorporate it in the rentals. This option is particularly popular for small and medium-sized contracts.
The equipment is legal property of OLE when the contract is in force. However, the Lessee has the legal right to use the equipment without interference and OLE cannot take possession or control of it unless the Lessee is in material breach of the contact.

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