Understanding the differences between LOA and LLD for professionals
What is the LOA (Location avec Option d'Achat)?
Leasing with a purchase option (LOA) is a financing solution that enables companies to have a vehicle at your disposal without buying it straight away. This leasing method offers the possibility of using a new or recent vehicle subject to payment of fixed monthly rents over a defined period (generally between 24 and 60 months). Please note that an initial contribution may be required for the 1st rent, generally from the author of 15%.
💡Did you know ? From a legal point of view, the LOA is treated as consumer credit. As a result, the user has a 14-day cooling-off period calendar days from the signing of the contract.
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At the end of the contract, thanks to this type of professional leasingyou can choose between exercise the purchase option paying the residual value of the vehicle and becoming the owner, or returning the vehicle and take out a new contract for a more recent model.
À Note a LOA contract can be terminated before its termHowever, there are costs involved. To avoid these costs, there are alternatives, such as theadvance purchase of the vehicle or the transfer of the contract to a third party.
In addition, this type of financing offers several advantages for companies :
- Financial flexibility No cash tied up, unlike a cash purchase.
- Purchase option : Possibility of becoming an owner at the end of the contract.
- Tax advantages Lease payments can be deducted from operating costs under certain conditions, and the electric vehicle does not appear as an asset on your balance sheet, helping to improve your financial ratios.
- A constantly renewed fleet Ideal for driving a recent, high-performance electric vehicle.
⚠️Point of attention ⚠️: Unlike long-term leasing, themaintenance is not generally included in a LOAalthough it can be added in option. It is also important to estimate your annual mileage to avoid extra costs at the end of the contract (for example : 60,000 km over 2 years, 90,000 km over 3 years...)
What is long-term leasing?
Long-term leasing (LLD) is a financing solution that allows professionals touse an electric vehicle without having to buy one, no need to worry about reselling it or losing money on the market.
Unlike leasing, long-term leasing does not offer the option of buying the vehicle at the end of the contract: the company systematically return the vehicle at the end of the rental period. It is therefore a ideal solution for companies looking for a flexible use with no long-term commitmentBut it is less suitable for those who plan to keep their vehicle for several years.
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That said, the principle behind long-term leasing is simple: the professional signs a leasing contract for a fixed term, generally between 12 and 60 monthsin in exchange for payment of a fixed monthly rent.
One of the main advantages of full service leasing is that it is a "one-stop-shop" solution.all-inclusive" . The monthly rent generally includes :
- l'maintenance,
- l'insurance,
- l'assistance,
- and sometimes even tyres.
This global approach enables better cost control and avoids unpleasant budgetary surprises. For a self-employed entrepreneur or a small organisation, this represents a considerable saving in time and energy.
Worth noting : Like leasing, long-term leasing does not have the same advantages. no impact on the company's balance sheetsince rents are considered deductible expenses rather than investment. In other words, it allows us to maintain a debt capacity intact for other projects.
The other strong point is the renewability. With long-term leasing, professionals can Regular use of recent modelswith all the latest innovations in the field ofautonomy and on-board technology.
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⚠️ Point of attention ⚠️: Like the leasing contract, the long-term leasing contract sets an annual mileage. A exceeding this mileage may therefore result in additional costs (depending on the contract, these overruns can range from 0.05 and €0.40 per additional km). It is therefore essential to accurately estimate your business travel needs before making a commitment.
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Electric vehicles under a professional leasing contract: a solution for every profile
Whether you are a SMES, liberal profession, craftsman or auto-entrepreneurchoosing between a LOA and a LLD is a difficult decision. strategic decision which must be aligned with your needs and your financial management. Each financing method offers its own advantages: flexibility and the possibility of purchase for the LOA, simplicity and cost control for the LLD.
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But it is also important toanticipate new tax constraints that could impact the overall cost of owning an electric vehicle on a leasing basis. Thenon-deductible depreciation of passenger vehicles in 2025 could influence the profitability of financing choices. To understand the implications of this reform and adapt your acquisition strategy, read our detailed article here.
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For SME managers: flexibility and lower costs
Managers of SMEs and VSEs are constantly juggling between cost control, optimising company finances and operational flexibility. In this context, the choice of an electric vehicle under a leasing or long-term hire contract is a strategic decision that must be adapted to the company's economic imperatives and mobility needs.
On the one hand, the LOA allows the managers of SMEs to use an electric vehicle while retaining control of the vehicle. possibility of acquiring it at the end of the contract. This solution is ideal for those who want to test a model before buying it, while keeping their budget under control with fixed monthly payments.
On the other hand, long-term leasing is attractive for its easy to manage. As previously stated, unlike the LOA, it generally includes services such as maintenance, assistance or even insurance, enabling managers to save time andavoid unforeseen costs. At the end of the contract, the vehicle is returned without constraintto regularly renew the electric fleet.
Le The choice between LOA and LLD depends above all on the management's strategy. So, for SMEs and VSEs who want tooptimise their costs while remaining flexibleWith its predictable budget and all-inclusive services, full service leasing seems to be the most appropriate option. However, the LOA remains an interesting option for those who are planning to buy a new car.acquire their vehicle in the medium term without impacting their investment capacity.
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For the self-employed: a specially adapted vehicle with no major commitments
The liberal professionalsWhether they are doctors, lawyers, architects or consultants, professionals have specific needs in terms of mobility. L'option of an electric vehicle under a leasing contract may prove particularly advantageous for this profile.
First of all, these packages give self-employed professionals access to a car adapted to their professional image without committing significant funds. This approach preserves their ability to invest in their core business, be it medical equipment, specialist software or continuing education.
For self-employed professionals looking for greater flexibility and avoid all constraints linked to the management and resale of the vehicleIf you're looking to buy a new car, long-term leasing is the best solution. It allows them to have a recent, well-maintained vehicleThis will have no direct impact on their cash flow and no long-term commitment. On the other hand, for those who plan to buy their car after a few years' usethe LOA can be an interesting optionThis is particularly true if the vehicle is perfectly suited to their professional and personal needs.
💡Did you know ? Self-employed professionals have a very advantageous tax system!
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For tradespeople and shopkeepers: a functional van without tying up capital
The craftsmen and retailers have specific needs when it comes to business vehicles: they need to be able to rely on a reliable, practical vehicle that is suited to their business, whether it's a electric utility vehicle for the material transport or a car for regular business travel.
In businesses where investment in equipment and stock is often substantial, this approach preserves the company's competitive edge. capacity to invest in core business.
In addition, as a reminder, the vElectric vehicles can be driven in all major cities because of their 0 CO₂ emissions. compared with some polluting internal combustion cars, a a significant advantage for deliveries or operations in urban areas. What's more, lower running costs (electric recharging is less expensive than traditional fuel) mean that you can keep your expenses under control over the long term.
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So, in most cases, the Leasing is the most advantageous option for craftsmen and tradesmen, as well as the other trades listed above.because it offers controlled budget and a simplified vehicle managementwithout worrying about resale or maintenance. It's an ideal solution for those who want a commercial vehicle that's always operational and up-to-date, without tying up capital.
Simplified access to a business vehicle for self-employed entrepreneurs
Self-employed entrepreneurs, whether they are consultants, delivery driversor service providers from servicesneed a reliable professional vehicle to get around on a daily basis and meet the demands of their business.
However, there are a number of reasons for this, at the start of business or with a sales still variablethe purchase of an electric vehicle can represent too heavy an investment. That's why LOA and LLD offer interesting alternatives for accessing a business car without tying up precious cash.
What's more, these packages give self-employed entrepreneurs access to a business vehicle. without having to justify a significant financial history. This is a considerable advantage for those just starting out and who have do not yet have the necessary financial background to obtain conventional credit.
The ecological aspect of the electric vehicle should not be overlooked. It allows self-employed entrepreneurs to convey a modern and responsible imageThis can be a significant commercial advantage, particularly in the case of sectors where environmental awareness is valued.
What documents do you need to provide for a leased or leased electric vehicle, depending on your profession?
Have you decided to take the step towards electric mobility for your business? Congratulations! Whatever your profession, leasing and long-term leasing offer solutions to suit every profile.
But to make your project a reality, you'll need to build a solid case. Don't let the administrative paperwork put you off! We've broken down the essential documents you need to provide according to your professional status.
Worth noting : This this list is not exhaustive. It is necessary to contact the funding body directly to make sure that no parts have been forgotten or are specifically required when taking out a long-term or leasing contract for an electric vehicle.
For SME managers
As a managerClick here to submit your application for a long-term or leasing contract for an electric vehicle. requires a special attentionas it is essential to provide a a number of supporting documents.
These documents are essential to prove the financial soundness of the company, its ability to meet the monthly repayments and its legal legitimacy.
- Identity document
- Driving licence
- K-bis extract
- Company statutes
- Professional bank details
- Balance sheets and income statements
- Tax returns
- Current accounting position
- Tax clearance certificate
- URSSAF certificate
- VAT declaration
- Notice of tax assessment
- Bank statements
- Vehicle quotation
- Business plan (if recent)
- Financial forecast (if recent)
- Certificate of professional liability insurance
For the liberal professions
As we saw earlier, the liberal professions often have need a reliable, high-performance vehicle for business travel. However, to take out a long-term hire or leasing contract, you need to provide certain documents to verify your financial and administrative situation.
- Identity document
- Driving licence
- Professional bank details
- Tax returns
- Current accounting position
- Tax clearance certificate
- URSSAF certificate
- 2035 tax return
- Notice of tax assessment
- Bank statements
- Vehicle quotation
- Business plan (if recent)
- Financial forecast (if recent)
- Certificate of professional liability insurance
For craftsmen and retailers
For these professions, here is the list of essential documents to prepare:
- Identity document
- Driving licence
- K-bis extract
- Company statutes
- Professional bank details
- Balance sheets and income statements
- Tax returns
- Current accounting position
- Tax clearance certificate
- URSSAF certificate
- VAT declaration
- Business card
- Notice of tax assessment
- Bank statements
- Vehicle quotation
- Business plan (if recent)
- Financial forecast (if recent)
- Certificate of professional liability insurance
- Sales declarations
💡Good to know : Finally, if your business requires specific licences or authorisations (e.g. taxi licence, authorisation to operate a public house), make sure you include them in your file. These documents can reinforce the credibility of your application and demonstrate the stability of your professional activity.
For auto-entrepreneurs
Self-employed entrepreneurs are often confronted with the following problems financial challenges when it comes to acquiring a business vehicle. However, even though long-term leasing and leasing options are more affordable than a traditional purchasefinancing organisations are asking certain guarantees in the form of supporting documents.
- Identity document
- Driving licence
- Professional bank details
- URSSAF certificate
- Notice of tax assessment
- Bank statements
- Vehicle quotation
- Certificate of professional liability insurance
- SIRENE registration certificate
The documents you need to provide for a leased or leased electric vehicle depending on your profession: Summary table
Here is a summary table of the Documents generally required for an application for a lease or long-term rental of an electric vehicledepending on your professional profile. This guide will help you to prepare your application, but bear in mind that the requirements may vary depending on the funding organisation. Be sure to check with your contact person for the exact list of documents required for your specific situation.
| Documents | Managers of SMEs | Liberal professions | Craftsmen and traders | Self-employed entrepreneurs |
|---|---|---|---|---|
| Identity document | ✓ | ✓ | ✓ | ✓ |
| Driving licence | ✓ | ✓ | ✓ | ✓ |
| K-bis extract | ✓ | - | ✓ | - |
| Company statutes | ✓ | - | ✓ | - |
| Professional bank details | ✓ | ✓ | ✓ | ✓ |
| Balance sheets and income statements | ✓ | ✓ | ✓ | ✓ |
| Tax returns | ✓ | ✓ | ✓ | - |
| Current accounting position | ✓ | ✓ | ✓ | - |
| Tax clearance certificate | ✓ | - | ✓ | ✓ |
| URSSAF certificate | ✓ | ✓ | ✓ | ✓ |
| VAT declaration | ✓ | - | - | - |
| Business card | - | ✓ | ✓ | ✓ |
| 2035 tax return | - | ✓ | - | ✓ |
| Notice of tax assessment | ✓ | ✓ | ✓ | ✓ |
| Bank statements | ✓ | ✓ | ✓ | ✓ |
| Vehicle quotation | ✓ | ✓ | ✓ | ✓ |
| Business plan (if recent) | ✓ | ✓ | ✓ | ✓ |
| Financial forecast (if recent) | ✓ | ✓ | ✓ | ✓ |
| Certificate of professional liability insurance | - | ✓ | ✓ | ✓ |
| Sales declarations | - | ✓ | - | ✓ |
| SIRENE registration certificate | - | ✓ | - | ✓ |
Why use Beev for your electric car on a professional leasing or hire purchase?
Choosing the right platform to finance an electric vehicle under a leasing or hire purchase agreement can make all the difference to a business. Beev has established itself as a key player, offering a range of simplified approach, transparent and optimised for businesses, tradespeople and the self-employed.
But what are the real advantages of using Beev to finance your electric vehicle lease?
A wide choice of electric vehicles for professionals
Beev offers a varied catalogue of electric vehicles to suit different professional profiles:
- Electric city cars for self-employed professionals and auto-entrepreneurs.
- Electric saloon cars and Electric SUVs for SME managers looking for optimum comfort.
- Electric vans for craftsmen and tradesmen who need volume and payload.
Monday to Friday
9am - 12.30pm - 2pm - 7pm
LOA and LLD offers negotiated at the best rates
Beev works with a number of financial partners and dealers, giving access to preferential rates. Thanks to this model, professionals can benefit from :
- Competitive monthly paymentsadapted to their budget.
- Offers with no deposit or first rent modular according to their financial capacity.
Comprehensive care and personalised support
One of Beev's key strengths is its turnkey support service. As a professional, you will have a dedicated advisor to help you every step of the way:
- Choice of vehicle to suit your business and your constraints.
- Putting together the financing packagewith rigorous follow-up to maximise the chances of acceptance.
A complete solution for recharging your electric vehicle
Beev doesn't just provide vehicles. The company also offers recharging solutions for professionals:
- Installation of charging stations on site or at your home.
- Financial aid for the installation of recharging infrastructure.
This comprehensive, integrated offer means that professionals can switch to electric vehicles with complete peace of mind, without having to worry about the constraints associated with autonomy.
Conclusion
Opt for a electric vehicle under a leasing contract represents a strategic decision for professionals concerned about their ecological footprint while optimising their budget.
Whether you are the manager of an SME, a self-employed professional, a craftsman or a self-employed entrepreneur, it is essential to have a clear understanding of your business. specific features of each formula and prepare a solid file to maximise your chances of obtaining the financing you want.
Remember that each trade has unique needs, and it's crucial to choose the solution that best aligns with your business objectives.
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