What does leasing mean?

Leasing is the international term used for the financing of fixed assets and equipment acquisitions by companies through hiring. The leasing company at the customer`s (lessee) request acquires the fixed asset and then leases it to the lessee. The leasing agreement has a fixed term and on expiration the lessee may purchase the asset at a predetermined price. During the term of the agreement the lessee is responsible for lease payments at regular intervals.

What type of assets can be financed through leasing?

Any fixed or tangible asset necessary for a company`s professional purposes can be financed through leasing. This includes real properties (offices, warehouses, etc.), motor vehicles, earth-moving equipment, aircraft, industrial machinery, computers, office equipment, etc.

 Who qualifies?

Any company or free-lancer can qualify, as long as the assets leased cover their professional needs

 Duration
Leasing agreements covering movable assets have terms of 3 years and over (rarely exceeding 5 years), while agreements covering real estate assets have terms that may range between 10 and 15 years.

 Lease payments
Lease payments are usually monthly and occasionally quarterly. The amount of the lease payment depends on the value of the asset, the term of the leasing agreement, the prevailing interest rates in the international market and the purchase value of the asset on the expiration of the agreement. 

Early agreement termination
If both contracting parties wish an early termination of the leasing agreement, this is possible.

 Benefits  

• Financing of up to 100% of the asset`s value  
• Option of financing the VAT and ownership transfer expenses associated with each asset transaction  
• Protection from technological obsolescence  
• Lease payment schedules adapted to specific cash flow requirements  
• Improved asset value utilization through sale & lease back agreements  
• Enhanced financial statements  
• Tax advantages 

Leasing programs - products
Direct leasing: the most common type of lease, involving the financing of new equipment or buildings. The lessee selects the equipment which best fits his/her business needs and ASPIS Leasing purchases the equipment or real asset(s) from the vendor/seller and leases it to the client/lessor.

Real estate leasing: a subcategory of Direct leasing. Real estate assets that can be financed through leasing include office buildings, warehouses, factories, etc. ASPIS Leasing undertakes all procedures related to purchasing the real estate asset.

Sale & leaseback: financing of assets already owned by a company. Widely used to improve a company`s liquidity, to reduce balance sheet capital assets, etc. In this case, ASPIS Leasing purchases the equipment from the lessee and leases it back.

Construction leasing: in case a property has not been completed, ASPIS Leasing undertakes to finance the construction.

Medical Leasing: special medical equipment leasing programs

Vendor Leasing: a cooperative effort with equipment vendors aimed at financing their sales while offering alternative financing solutions to their customers.  For your introduction to ASPIS Vendor Leasing Application, please select.

Leasing Procedures
The lessor-customer collects the required documentation and delivers it to the leasing company, which then initiates the application evaluation process.

Upon approval of the application, the leasing agreement between the lessee and ASPIS Leasing is signed.

Subsequently, ASPIS Leasing places an order with the vendor for the equipment, which is then delivered to the lessee.
Upon delivery of the equipment, the leasing agreement is considered in force. 

International Accounting Standards
Companies that will be applying International Accounting Standards in 2005 must divide leasing agreements into operating leases and finance leases. According to International Accounting Standards (IAS) there is a distinct dissociation between Finance Leases and Operating Leases. There is a different way of handling Finance and Operating Leases for the lessee. With Finance Leases only the interest of the lease is deductible from the Financial Results and the asset is depreciated. On the contrary, Operating Lease payments are considered expenses and so entirely deductible from Financial Results. Operating Lease services are offered by our subsidiary, Aspis Credit SA.

Let us clarify that the application of International Accounting Standards only affects the appearance of the consolidated balance sheets and not the estimation of taxes due that will continue to be made according to the principles valid in Greek taxation legislation. Therefore, finance leasing continues to offer tax benefits to the lessee notwithstanding the way accounts are kept.
 
Required Documentation
Brief company profile
Financial Data: 

• Category C books of account: financial statements for the last 3 years along with attachments, a current general ledger trial balance and the corresponding trial balance for the previous year.  
• Categories A & B books of account: tax returns and cumulative VAT statements for the last 3 years, VAT statements for the current year.  
• Information on guarantors - legally responsible parties: E9 statement (Financial status of the company`s guarantors and legally responsible parties).  
• Investment feasibility study (for newly established companies or large investments)
  Vendor quote

Real estate titles (for real asset related leasing)
Lessor`s legalization documents