Of the different types of leasing financial leasing is the most classic one. The lessor purchases a certain object from the chosen supplier in your name (the lessee). After signing the lease, the lessor finances the entire purchase and you pay monthly lease reimbursements for using the object.
In terms of accountancy, you are the owner of the object and therefore the investment goods will be activated on the balance sheet and written off in accordance with the legal terms. But the financing is done by the lessor, allowing you to have plenty of liquidity at your disposal and to be able to spread the costs. When the contract ends you can acquire total ownership thanks to the accountant purchase option. This purchase option has to be less than or equal to 15% and should possibly be covered by a repurchase statement in name of the lessee or a third party. The purchase option may vary depending on the goods that were leased and on the conditions of the leasing company.
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