The practical answer
Related-company use must be disclosed because the borrower, asset user and source of repayments may be different legal entities.
Provide the group structure, which company contracts with customers, which employs drivers and which will use the vehicles. Explain any intercompany hire or recharge arrangement.
The lender may require a different structure, supporting information or consent. Common ownership does not make it safe to move financed assets between companies without checking the agreement.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
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