Hire Agreement (Lease Contract)

Let us translate the jargon, and run you through our agreements, step by step, the terminology and the key areas we want you to be clear on.

A contractual agreement between your business and us.

Let us guide you through the agreements, one step at a time. You can find out what's included in the documents, what the jargon means and the important information for you and your business.

Your agreement, explained

Let us describe in more detail our agreement and highlight the relevant areas.

The Agreement for your business

Regulated or Non Regulated

We have two different Agreements, let us go through which Agreement your business should use.

Agreement Usage

Regulated Agreement:

Sole traders
Partnerships
Non-corporate bodies
Regulated business that bhave become Limited companies

Non-Regulated Agreement

Limited companies

Payment structure

How much and when

A breakdown of your payments - from the first to the last. We want nothing to be unexpected.

Payment structure

First payment - The first payment / invoice due. This will include your initial rental (initial payment) and any daily rentals that are required.

Daily rentals - If your contract commences 10 days before the start of the next quarter or month (depending on which payment frequency you selected) we will require 10 daily rentals. These are calculated equal to one - thirtieth of a monthly rental.

Rentals - The number of payments you will need to make to complete the agreement.

Payable / Due - When the daily rentals and subsequent rentals will be issued for payment.

Delivery date - Rentals commence on the day your equipment is delivered and you have signed the Delivery Certificate. It is the start of your hire agreement with us.

Payment frequency - The agreement frequency that your payments will be issued. (Quarterly - 4x per year or Monthly - 12x per year)

Maintenance charge - Payments will be added if your equipment requires maintenance and service, and if your supplier wishes us to collect this charge on their behalf.

Incorporating a previous lease

Including a settlement

You have already leased your equipment in an existing lease agreement with another leasing company. No problem! We can settle the amount to terminate that agreement and incorporate the settlement into our agreement.

Incorporating a previous lease

In order to incorporate the settlement of an existing lease into this agreement we need information from you. Our Agreement has a section that requires completion. We need the following information:

The total cost of the equipment including accessories you have leased
The amount to terminate the existing agreement (termination fee or settlement figure)
Total amount on which the rentals are based (this will include the additional payments for the hire)
Rental rate - the interest charged for the use of the equipment during the lease period.
Existing leasing company - The company who your current agreeement for the equipment is with.
Existing Agreement number or reference - A reference number to trace your existing agreement with your existing leasing company.
A signature - to confirm all the details you have provided us are correct!

Terminology

The jargon explained

Jargon is for those in the industry. We are aiming to make our contract jargon simpler. For now, let us explain what we mean.

Terminology

Contract Number	Keep track of this number, when you call us - this is the best reference for us to track down your contract.
Corporation Tax Rates	This is a tax charged to us by HMRC. Corporations / businesses have no control over this rate.
Daily Rentals	If your contract commences 10 days before the start of the next quarter or month (depending on which payment frequency you selected) we will require 10 daily rentals. These are calculated equal to one - thirtieth of a monthly rental.
Data Protection Notice	In compliance with the EU General Data Protection Regulation, grenke must provide our customers with information about how we process and protect your personal data. Our Notice sets out how we comply with this regulation and information on how to access any personal data held by us.
Delivery Certificate	This confirms that you have received all the equipment and it is in full working order. Based on this confirmation grenke starts the hire agreement.
Delivery Date	The date of delivery is also the start of your hire agreement with us.
Documentation Fee	This is a standard fee in our industry. This fee is required to process all the paperwork involved in the hire agreement. We have three separate teams that check all documentation before a hire agreement is finalised.
Equipment	The item(s) you are hiring with us.
Equipment Protection	This is insurance. We call it Equipment Protection as we are not insurers. We arrange with a third party, insurance for your equipment. The equipment must be insured to be in situ, so we do require either proof of your insurance (within 6 weeks) or we will arrange Equipment Protection for you.
Grenke Leasing Ltd	That's us. As subsidiary of grenke AG (Group) which have their Headquarters in Germany.
Hire Agreement	This is your contract with grenke. It sets out the terms and conditions by which you are hiring your equipment from us. Hiring the equipment means you are making payments for the usage of the equipment. You are not making payments towards the eventual ownership, this is known as a Hire Purchase Agreement - grenke does not offer this type of agreement.
Hirer	You are the hirer. The equipment is your responsibility, but you do not own the equipment. On the closing of your contract, you will need to return it to us.
Initial Rental	Your first payment to us.
Intervening Period	The period between your Delivery Date and the Primary Period.
Lease	A lease allows a business to spread the cost of acquiring a piece of equipment over a chosen period and removes the need to pay for it all upfront. There are different types, some include simply the hiring of the equipment, others allow you to contribute towards owning the equipment at the end of the contract, grenke does not provide this type of lease.
Maintenance Charge	If your equipment requires service and maintenance throughout your contract, your supplier may request we collect the charges on their behalf. This means only one payment, just with this additional amount when a service is needed.
Owner	That’s us. We own the equipment and hire (lease) it to you. When your contract closes, you must return the equipment to us. Your supplier may choose to buy back the equipment from us.
Primary Period	The initial contractual period that you are hiring the equipment from us.
Quarter Days	The first days at the start of each quarter (1st January, 1st April, 1st July and 1st October)
Rentals	The number of payments you are contracted to pay to us during the agreement. For 3 years, on a quarterly basis, this would be 12 rentals. For 5 years, on a monthly basis, this would be 60 rentals.
Reseller	This is your supplier. See Supplier definition.
Sales Person	This is the person who promoted the equipment and introduced you to the leasing option with us. They are also referred to as a 'negotiator'. They will have been responsible for arranging the delivery of your equipment and any further installations or maintenance.
Secondary Rentals	If you decide to keep your equipment beyond the Primary Period and not inform us that you wish to terminate your contract, you will continue your payments at the contracts outlined frequency (Monthly or Quarterly).
Settlement Figure	This is the outstanding amount left to pay on your contract. If you wish to settle the contract and return the equipment, we can provide you a settlement figure. This is also called a Termination Sum.
Supplier	The company who supplied the equipment.
Termination	If there is any breach of the hire agreement (lease contract), the equipment hire will be terminated. We will provide you notice if you are in breach. Reasons why you may be in breach are outlined in the Terms & Conditions, take note.
VAT Schedule	An annual Schedule of VAT provides advance notice of Direct Debit payments including payment dates and amounts for the coming year.

The timeline of your Agreement

The important moments in your agreement outlined.

info

Didn't find what you were looking for?

Still have a question unanswered, why not speak to one of our team?

Speak to us today