Leasing is based on the important concept that “Profit is created through the use of the Asset and not necessarily from the ownership of it”

For the leasing company this means that:

• The ownership of the Asset is completely clear
• The value of the Asset (is chosen to be) higher than the value of financing
• The term of the finance is based on the economic life cycle of the Asset
• Ownership of the Asset cannot be changed without the consensus of the Lessor/Lessee

For the Lessee this enables that:

• Lease financing process to be more flexible than the standard bank loan
• There is no need for additional collateral (except in very specific cases)
• Payment may vary to the payment ability of the Client (based in economic life cycle of the Asset)
• Cash flow of the client is more predictable and manageable
• Leasing conserves the capacities of the Client for other loans or investments
• Asset under Leasing contract cannot be liquidated from other creditors