Leasing is a commercial operation by which a person called a locator / financier transmits the right to use an object whose owner is, to another person, called lessee / user, for a specified period of time, for a periodic payment called leasing rate, and at the end of the leasing period the lessor / grantor undertakes to respect the user’s right to purchase the asset, to extend the leasing contract or to cease the contractual relations.
In other words, leasing is a financing method, an agreement whereby some companies provide financial resources to individuals or societies for the purchase of goods (cars, equipments, etc.), asking for interest on monthly payment rates.
The lessee / user may request the purchase of the leasing object before the end of the leasing period but not earlier than 12 months if the parties agreed this and if the user pays all the obligations assumed by the contract.
The participants in the leasing operation are the lessor / lessee, the lessee / user and the producer / supplier.
The user decides on the supplier and the leasing object he wants to acquire.
The leasing object is purchased by the financier on the basis of a sales contract with the supplier and a lease with the user.
Advantages of leasing
– leasing is an investment without capital, because through this system, the lessee secures the purchase of a good with high technology, at the level of the world technique, by an advantageous payment method;
– allows proper and efficient dimensioning of investments;
– leasing requires full financing and does not require immediate repayment of the amount due;
– leasing procedures are simpler and more accessible for clients than bank loans;
– in leasing, issues related to the acquisition and financing of assets are decided at the same time;
– the leasing system favors the concentration of user resources on profitable activity by protecting working capital;
– leasing allows the lessee to make the investment when it does not have the necessary liquidity, leasing rate is usually paid from the use of the leasing object;
– lease, insurance and lease management costs are deducted from expenses, thereby reducing the taxable income for the year;
– the asset acquired under the financial leasing system is amortized by the User, having the possibility to choose the desired depreciation regime (linear, degressive or accelerated), according to the related legislation;
– offers protection against inflationary effects in long-term contracts;
– leasing is a transparent way of financing. Lease rates, known throughout the lease term, are fixed, allowing good management of the company’s liquidities,, with positive effects on the economic and financial indicators of the company;
– being a contract of will, the User may choose his supplier and express his / her point of view on many aspects of maintenance, risk, performance, service, etc .;
– the flexibility offered by leasing financing facilitates the rapid and easy purchase of the best asset to the client’s activities and requirements.
Stages of leasing
1) The choice of the asset and supplier
The client decides on the characteristics of the good and the supplier.
All details related to the nature of the good (price, technical features, delivery details, installation and operating conditions for equipment) will be negotiated by the user directly with the chosen supplier, following the contract of sale-purchase and leasing contract.
2 ) Obtaining the offer and requesting for funding
Based on the prices negotiated with the supplier, TOP Leasing prepares a general financing offer, which will calculate the advance, the leasing rate, the value of the insurance, etc. Depending on the information presented in the loan request, the initial offer may be changed depending on the risk class to which the customer will be placed.
3) Presentation of the necessary documents
For the preparation of the leasing file, the client must submit a series of documents. Depending on the complexity of the project subject to funding, TOP Leasing may ask the customer for additional information.
4) Analysis and approval of the request
The evaluation of the leasing request is done by TOP Leasing specialists within 24 hours.
5) Leasing contract signing
In case of a funding approval, will be concluded a financial leasing contract that will include the negotiated terms with the supplier of the asset and the specific terms of the TOP Leasing policy regarding the way of payment, the insurance of the payments, etc.
6) General insurance of the leasing object
The leasing object will be asured by TOP Leasing&Credit, throughout the leasing contract, for all the risks, under the conditions established with the insurance company and the TOP Leasing&Credit, the insurance will be paid by the user.
7) Delivery of goods
The obligation for goods delivering rests entirely on the supplier, the operation being assisted by TOP Leasing&Credit specialists. In addition, we provide support for the operations after the delivery of the goods (registration, deletion, etc.).
The Leasing Company assumes responsibility for ensuring the leasing object (CASCO insurance) and (AORC insurance) on the entire period of validity of this contract, annually concluding the new insurance contracts with the insurance company. The insurance costs are suport by the user, who pays the insurance annually.
The CASCO contract has as object the insurance of cars or trucks/equipment in accordance with the special insurance conditions stipulated by the insurance company. The CASCO assurance implies the possibility to use the cars on the territory of the Republic of Moldova, the CIS and the countries of Europe. Insurance is completed in 1 hour.
Compulsory civil liability insurance is performed in accordance with the provisions of Law no. 414-XVI of 22.12.2006 on the compulsory civil liability insurance for damage caused by vehicles, offering to the insured the insurance protection for the civil liability cases as a result of the damages caused to the lives, health and property of third parties through vehicle accidents on the territory of the Republic Moldova.