SMALL businesses using HSBC banking facilities will no longer be able to use contract hire.
The bank has ended its Vehicle Finance arm that provided contract hire financing to business car managers.
HSBC chops its Vehicle Finance arm
HSBC said any existing Vehicle Finance customers would be migrated to Lex Autolease, a subsidiary of banking rival Lloyds, which has recently performed the bank end administration of Vehicle Finance contract hire.
In 2005, HSBC outsourced the administration of its Vehicle Finance business to leasing company Lex (part of HBOS at the time) and set up a referral agreement. Following subsequent mergers and takeovers, Lex now forms part of the Lloyds Banking Group.
HSBC said the referral agreement was not meeting the expectations of either Lloyds or HSBC so the decision was taken mutually to end it.
However, HSBC said other forms of finance to purchase business cars would continue to be available from the bank.
HSBC chops its Vehicle Finance arm
