What is Leasing

The Concept of Financial Leasing

A contractual agreement between the Company (the Lessor) and the Client (the Lessee).

The Client (the Lessee) may use the asset during a specified period of time.

The Client (the Lessee) shall pay periodic installments, to be agreed upon in advance.

The asset shall be registered in the name of the Company (the Lessor) throughout the term of the contract.

Parties Involved in the Financial Leasing

The Lessor: A financial leasing company.
The Lessee: The client.
The Leased Asset: The fixed asset, subject of the contract.
The Supplier: The party the client (the Lessee) chooses to buy the leased asset from.
The Leasing Period: The period during which the client (the Lessee) shall pay the installments, from the first to last installment.
The Leasing Rate: The leasing rate based on which the installments shall be determined.
The Expenses: The expenses related to the contract that shall be part of the installments

The Financial Leasing Law

The Financial Leasing Law No. 45 for the year 2008 shall regulate the relationship between the parties of the financial leasing contract.

The leased asset shall remain the property of the Lessor throughout the duration of the leasing contract.

If the client (the Lessee) has benefits or exemptions from customs duties or sales tax, such benefits shall be transferred to the Lessor when establishing the financial leasing contract.

The Benefits of Financial Leasing

The possibility of financing the operational expenses, such as (licensing, registration, insurance, maintenance and alternative car) as part of the lease installments, so reducing the financial burden and efforts required by the client (the Lessee) that include following up and paying the expenses associated with the asset, such as maintenance, insurance and other expenses, by adding them in the form of a fixed amount to the lease installment.

The possibility of reducing the installments and settling the difference from the end-of-term payment.

An alternative financing tool that suits the clients who do not wish to opt for the traditional financing tools.

Encouraging the continuous updating of assets to keep pace with technological developments.

Lease installments proportional to the cash flow anticipated from the leased asset.

Flexible installments proportional to the income and fixed yield.

Lease terms correspond to the productive life of the leased asset.

The leased asset serves as basic guarantee for financing.

No mortgage fees or any additional commissions.

Financing capability of up to 100%.

No salary transfer needed.

Fixed assets financing.

Tax benefits.