This is a fee the leasing company invoices to the lessee for lease-related administration costs.

Finance lease is typically a long-term lease of an asset where the lessor passes economically onto the lessee all risks and revenues arising from the operation of the asset. The lease term is virtually identical with the useful life of the leased asset, and the lease payments cover the acquisition price of the leased equipment. Finance leasing is u [..]

A leased asset must always be covered by insurance, whether arranged by the leasing company or by the lessee himself. In such a case, the leasing company requires that compensation be tied up in favour of the leasing company. Insurance is arranged against all risks (natural hazards, theft, accident, and machinery insurance, if applicable); vehicles [..]

Leasing is a specific way of financing investment needs – the renting of production equipment, transport equipment, machines, real property, and other assets, under contractual terms. However, leasing can´t be seen only as renting, but also as a method for acquiring fixed assets. It is usually a trilateral arrangement between the lessor, the lessee [..]

The leasing koeficient is determined as the quotient between the total leasing price incl. VAT and the leased item´s acquisition price incl. VAT. It indicates the increase in the cost of leasing compared with purchasing the item for cash. Note.: A number of leasing companies define the leasing coefficient differently. Some companies define this ter [..]

Financing through a loan involves an immediate transfer of title to the client (it is included in the balance sheet), which meets the conditions for drawing on government subsidies or subsidies from the EU structural funds. This way of financing allows for a complete deduction of VAT on the full acquisition price as soon as the asset has been acqui [..]

From the point of view of the lessor, this is the price for which the leased asset will be sold to the current lessee at regular lease end (VB Leasing CZ uses a symbolic resale price of CZK 1000,- or EUR 50,-).

A leased asset´s residual value is the difference between its acquisition price and its depreciation.

This is a sum of all instalments paid over the lease term. A lease instalment consists of the respective proportion of the acquisition cost, the amount of interest, and, in the event of insurance premium included in instalments, instalments and therefore the total leasing price, too, include the premium.

This amount is determined as a set percentage of the acquisition cost and is usually paid by the lessee at lease onset.