Undisclosed Principal and Agency Agreement
An Undisclosed Principal and Agency Agreement is the ideal product for a Partner seeking greater control over their customer relationships. As part of the arrangement, the Partner (agent) retains the personal relationship with the customer, at the same time creating a legal relationship between the customer and the agent’s principal (BOQ Finance). As BOQ Finance is the Lessor there is no requirement on behalf of the Agent to account for the underlying asset.
Sales of Receivables
A Sale of Receivables structure is a popular way of providing wholesale funding to Principal Lessors. Under a Sale of Receivables agreement, the Partner originates a transaction with the customer and then assigns the associated rental stream to BOQ Finance in exchange for an agreed purchase price. This type of financing structure allows a Partner to move from simply an Agent to a Principal Lessor responsible for its own portfolio of leases. The additional complexity associated with this type of product requires investment by the Partner in systems and processes to account for and manage a wide range of sales, accounting and financial activities.
Limited Recourse Loan
In addition to a Sale of Receivables type model, Limited Recourse Loans are an alternative means of providing wholesale funding to Principal Lessors. A Limited Recourse Loan is advanced to the Partner based on the associated cash flows of a lease agreement. BOQ Finance’s rights to recover from the borrower, security provider or obligor are limited to these cash flows. As the portfolio management responsibility resides with the Partner, investment in systems and processes to account for and manage a wide range of sales, accounting and financial activities is required.
BOQ Finance partners with Novated Leasing Providers to ensure their customers receive the best finance experience possible. We have the ability to interface with Novated Leasing providers to accept digital applications: reducing turnaround time and double entry. Our decades of industry experience allow us to be nimble, always focussed on the outcome for both the customer and our partner.