Of the various forms of lease, the Financial Lease is the most classic and most chosen. The lease provider (lessor) purchases a certain object from the supplier of your choice on behalf of you (the lessee). After signing the lease contract, the lessor finances the entire purchase and you pay monthly lease fees for use. With this type of lease, you are the economic owner of the lease object and the object is capitalised on your balance sheet. Depreciation takes place according to the standards of your company and you retain the right to subsidies and other tax benefits. Financing is provided by the lessor, which allows you to spread the cost of your investment and keeps your cash available for other purposes.
At the end of the contract, the purchase option price allows you to take over the legal ownership of the object and you become the owner of the lease object. The purchase option is usually a symbolic amount of 1‰ (with a minimum of 100 euro) of the investment. The purchase option can differ per lease object and lease company.
Financial leasing
Financial leasing
Of the different types of leasing, financial leasing is the most classic type. The lessor purchases a certain item from the chosen supplier in your name (the lessee). After signing the lease, the lessor finances the entire purchase and you pay monthly leasing fees for using the item. In terms of accountancy, you are the owner of the item and therefore the investment good will be capitalised on the balance sheet and written off in accordance with your company’s standards, but the lessor takes care of financing, allowing you to have plenty of liquidity at your disposal and to spread the costs.
When the contract ends, you can acquire total ownership thanks to the accountant purchase option. This purchase option has to be less than or equal to 15% and may vary depending n-on the goods that were leased and the conditions of the leasing company.
