Leasing

What is leasing?

Leasing is particular form of financing the purchase, whereby giver (house leasing) buys the object that recipient has chosen , and gives it to the recipient to use it. The recipient is the owner in commercial sense , but legal ownership is assigned after the whole arranged commitment is completed.

• This is worldwide proven and tested way of buying property.
• One of the most effective forms of financing, that enables the wishes, needs and possibilities of recipient come true (mostly the annuities are paid monthly, or quarterly, or annually, as arranged ... also, the repayment time is different).
• Getting necessary capitals easily (way to approval is shorter than using other financing forms).
• The object of buying is the financial insurance at the same time.
• Annuity of the leasing are equal all the time.
• Altogether service, even during the payment ( new ventures, early payments etc...).

Financial leasing

Financial leasing is a form of financing, due which leasing recipient at the beginning decides to take the ownership over the object of the leasing after the contract expires. Financial leasing instrument is the real financing the purchase of the property , and it is convenient for purchase by installments , and the main difference between loans and this form of financing is that the owner of the object is until the end of payment is leasing giver. This form of financing requires the recipient of the leasing to calculate the amortization, that is not the situation when taking operational leasing, when the amortization is calculated by giver.

Financial leasing manages the cession of the ownership over the object based on the payment, in equal monthly annuities (mostly from 1 to 5 years , and when dealing with real estates it is to 15 years ). After signing the leasing contract , the leasing recipient becomes commercial owner , and during the contract the giver is legal owner. When required pays off all the commitments and purchasing provision, the object legally his.

For example, if the recipient is legal entity or company owner, this leasing object is registered in his business registers as a basic capital. This implies also some tax relief. After the leasing contract is signed , the recipient pays certain amount of participation, that depends on the type of the leasing object and client’s solvency, and than the nuber of monthly payment is arranged.

Advantages of the financial leasing:

• In the future, you can precisely plan your finances, and optimize your financial flows although your monthly installments are equal.
• The process of the approval is fast and simple.
• During the leasing period, you actually can use the object.
• The leasing object is your basic capital , that you amortize according to accountancy standards (in the case of legal entity).
• The whole purchase value you can use as a tax relief.
• As paying the buying provision , the object is your property.
• This possibility is available for new companies.
• Approved finance amount is usually bigger than the amount of the loan.

Business lease (operational leasing)

Business lease or the operational leasing is special form of financing and it is assigned to all the clients that are interested in usage, but not the buying the leasing object after the expiration of the contract. It is especially convenient for companies, because it allows the usage of the object in arranged time. The object of financing is booked by the leasing giver and also calculates amortization, and the recipient pays monthly annuities that books like lease expenses.

After the expiration of the contract recipient has to return the object. Monthly amounts of renting are equal in foreign currency (exchange clause) all the time during the contract , and that allows precise planning of your finances, and optimization of your financial flows.

The object of the financing chooses the hireling himself and the giver and the recipient arrange the duration of the contract, the amount of the renting and insurance needed. The duration of the contract is adjusted to the requirements, that are significant for specific activities and the object of the lease and it is harmonized with positive legislation.

The advantages of the business lease:

• It is especially convenient for companies because it enables the usage of the object within the arranged time.
• The objects used do not represent the obstacles for the accounts, and the amortization is not included.
• Monthly installments are equal all the time during the contract period, that enables precise planning of your finances, and optimization of your financial flows, in the future.
• The decisions about post- contract period are not supposed to be made at the time of the creating of the contract, but you can return the lease object after the expiration of the contract, or decide to use other possibilities (extension, repurchase, leasing...).