WHAT IS OPERATIONAL LEASE?
Operational Leasing is a long-term rental contract where period of contract is shorter than economic life of the subject of lease is. After the expiry of the lease, asset leased is being returned to lessor. Leased asset is not being kept in the books and it’s not put in Credit records of a lessee. So, credit capability is not being reduced by using this innovative model of passenger/commercial vehicle usage. Monthly installment is being recorded as an expenditure (OPEX) recognized in tax statement.
Operational Leasing Advantages
• lower interest rate;
• lower initial down payment;
• cost of LTR are being recorded as material expense;
• simpler cost control; fixed, euro based monthly installment;
• no credit exposure of lessee;
• one „cover it all“ invoice – monthly installment (car financing, registration, regular and CASCO insurance, tires, regular maintenance, roadside assistance, etc.).;
• improved and controllable cash flow;
• free of ownership risks;
• lessee has no need to keep the asset in its books