Financial leasing is the financing of a purchase with the right to use the object of leasing until the expiration of the contract. By paying the last installment, the leasing user becomes the owner of the Leasing Object. Through leasing, the user does not invest his own funds for the purchase of the machine or equipment, but has the obligation to periodically pay compensation for its use. This type of leasing allows, after the expiration of the contract, the user of the object of leasing to become its owner.

Characteristics

In the case of legal entities, the object of leasing is kept as a basic asset in the balance sheets, which is important for the calculation of depreciation
During the duration of the leasing agreement, the owner of the leased object is the lessor
After the expiration of the legally prescribed period of 1 year in the case of vehicles and 2 years in the case of real estate, there is a possibility of purchasing the object of the lease.
With the payment of the last leasing installment and the signing of the purchase agreement, the lessee becomes the owner of the leased object.
When concluding a leasing contract, comprehensive insurance is mandatory.
In the balance sheet, financial leasing is recorded as assets and liabilities.
In the case of financing through financial leasing, interest and compensation are treated as financial expenses in the company's profit and loss account, while paying the leasing installment leads to a reduction in leasing obligations.

Advantages

Flexibility – the leasing installment payment plan can be tailored to suit the user's needs.
Minimum participation
Amortization plan - which enables a clear and precise calculation of costs

Read the General Terms and Conditions for Financial Leasing