What is financial leasing?
Financial leasing is a type of credit arrangement involving three parties:
• Lessee
• Lessor
• Supplier
Lessor is the owner of a subject of lease until the expiry of the contract. The right of ownership is transferred to the Lessee upon the payment of the final instalment. In the territory of Serbia, Financial leasing is regulated by the Law on Financial Leasing.
Advantages of financial leasing
• economic owner of the subject of the lease is Lessee (the Lessee is entitled to show the depreciation in its balance sheet)
• easier way to purchase equipment or car
• easier way to get to start a new business
Faster to the goal
The procedure of the leasing approval is shorter and quicker than the credit approval or other types of financing. The procedure of concluding Lease Agreement is simple and quick and is not conditioned by additional securities as it is case with credit and includes the following steps:
• you select the subject of lease directly from a manufacturer or an authorized dealer
• you submit the application for leasing approval and documents required for the evaluation of creditworthiness
• The approval being granted and the contract being signed, you need to make a down payment and submit the security instruments
• you take over the subject of lease for use
