In case of Financial Leasing all the profits and risks will be bared by the Client. If the client is a juridical person:

• The Asset will be booked in the Actives of the company
• The financed amount will be booked on the Passives of the company
• The Lessee has the right to declare as deductible expenses: Amortization, Financial Cost and also the other expenses such as maintenance, insurance, etc.
• In this case the PV of the lease payments from the client should be higher than 75% of the Asset value
• At the end of the Lease contract, the Lessee has the right to by the Asset with the remaining value (usually a symbolic price, far lower than the market price)

Operational Leasing is a simple Leasing:

• Usually the maintenance costs of the Asset are included in the contract
• The Asset is booked on the Actives of the Leasing company
• Lease payment is an income for the Leasing company and a deductible expense for the Client
• At the end of the Lease contract, the Lessee can/or not have the right to by the Asset