Financial leasing is a type of credit arrangement which means that there are three parties involved:
Lessee
Lessor
Distributor
Lessor is an owner of subject of the lease until expiry of the contract. The right of ownership is transferred to the Lessee upon repayment of the final instalment.
On the territory of Serbia Financial leasing is legally regulated under the Law on Financial Leasing.
Advantages of financial leasing
economic owner of subject of the lease is Lessee
(the Lessee is entitle to show the depreciation in its balance sheets)
easier way to purchase equipment or car
easier way to get to new business attempt
Faster to the goal
The procedure to leasing approval is shorter and quicker then with credit approval or other types of financing.
The procedure of concluding Lease Agreement is simple and quick and is not conditioned by additional securities which exists with credit facilities and has following steps:
you choose the subject of the lease at the manufacturers or authorized dealer
you submit the application for leasing approval and documents required for assessment of financial standing
after approval for financing has been granted, and contract signed, you make down payment and submit the instruments of security of payment
