A short letter between the two businesses confirming the date the agreement moved across, and who is responsible for what from then on.
Use it when: The funder has completed the transfer and you want the handover date and the responsibilities recorded between the two businesses.
Why it matters
The funder's paperwork records the change of hirer, not what the two businesses agreed between themselves.
It fixes the date from which rentals, insurance, fines and charges become the incoming business's responsibility.
It is the document your accountant will want when the rentals stop appearing in your accounts.
Worth knowing
Don't sign it until the funder has confirmed completion in writing.
Keep the funder's confirmation email with it: together they are the full record.
Cancel the Direct Debit only after the funder has confirmed, or you may end up in arrears on an agreement you no longer hold.
The template
TRANSFER COMPLETION CONFIRMATION
This confirms the transfer of a business contract hire agreement between:
Outgoing business: [COMPANY A], company number [NUMBER], of [ADDRESS]
Incoming business: [COMPANY B], company number [NUMBER], of [ADDRESS]
AGREEMENT
The rest of this template is free to members.
A template to adapt, not legal advice. Your own agreement and your funder's terms come first, and we'd always suggest checking anything you're unsure about with your accountant or solicitor.