Leasing is a financial operation in which a leasing company purchases an asset selected by the client and gives access and possession of the asset to the client.

Financial leasing is a lease transaction in which a leasing company acquires the asset selected by the client and grants the right to use the asset for a specified period of time during which, after full payment of the price of the asset and interest, the client becomes owner of the asset he/she rents.

Advantages offered by financial leasing:

• simple and convenient way of financing;
• the required asset can be acquired at the time it is needed, without waiting until there is sufficient money;
• the asset can be used before the full price is paid;
• circulating assets can be used to satisfy other needs;
• the choice of an acceptable down payment, the term of the leasing contract, and the amount of payments allows optimal distribution of the flow of expenditures;
• no pledge of property is required since the asset itself serves as a collateral;
• upon expiration of the leasing contract, the client becomes the owner of the asset;
• financial leasing services are provided to both corporate and private clients.

By choosing the service of Financial transport leasing with residual value (residual value is set by the Vendor of the property), the client pays lower monthly payments, as during the term of the leasing contract he does not pay the full value of the property, i.e. he does not pay the residual value. After the contract term expires, the client, upon paying the residual value of the property becomes the owner of the property, or in cases where the term of the contract has not expired, the liabilities are taken over by the new owner.

The advantages of leasing with residual value are as follows:

• lower monthly payments;
• the client paying monthly payments of the set amount may acquire a more expensive property.

Transport leasing combined with insurance is a service where upon signing a contract of financial leasing, a new motorcar is at once insured for the entire leasing term (up to 5 years) with Kasko insurance who offer especially favourable terms.

The advantages of leasing combined with insurance are as follows:

• insurance rates from 2.65 per cent;
• motorcar is insured for the new value for up to 5 years;
• depreciation of replacement parts is not calculated;
• you will save time, as you receive your car complete with insurance;
• you will have no need to extend your insurance as it will last for the entire period of leasing;
• insurance payments are not subject to price increases;
• every year insurance payments are recalculated according to the depreciation factor that is set by the insurer;
• insurance payments are included in monthly financial leasing bills.

Operating leasing is a lease transaction in which a leasing company acquires the asset selected by the client and grants the client the right to use the asset for an agreed period of time. Upon termination of the contract, the client may return the asset, extend the lease, or acquire the asset for a negotiated price.

Advantages offered by operating leasing:

• simple and convenient way to acquire new property;
• the client is free to choose the period of the lease;
• no need to be concerned about the sale of the asset;
• no pledge of property is required. The deposit paid when an operating leasing contract is concluded is set off against future payments;
• compared to financial leasing, monthly payments can be lower. This depends on the residual value of the asset calculated for the end of the term of the contract;
• simplified accounting. The asset taken on lease is included in the accounts of the leasing company, while the rent is the cost to the company;
• even distribution of the cost of maintenance of the asset throughout the period of leasing;
• financial liability to the leasing company under the operating leasing contract is not included in the balance sheet of the company;
• settlement with one supplier on a monthly basis.

Leaseback is a financial arrangement in which a company sells its asset to UAB DnB Nord Lizingas, and the latter leases it back to the company under a financial leasing contract. Proceeds generated from the sale of the company's asset may be used to increase the circulating capital of the company, to finance new projects, etc.

Seek advice from DnB NORD Leasing professionals, who will assist you in selecting the most appropriate and advantageous form of leasing. We are ready to work together!