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Leasing Guide

Everything you need to know about leasing

What is Leasing?

Leasing is a financing method that allows you to use an asset (such as a car, equipment, or property) without purchasing it outright. Instead, you make regular payments over a fixed period, typically with the option to purchase the asset at the end of the lease term.

Leasing offers several advantages over traditional purchasing, including lower upfront costs, predictable monthly payments, tax benefits, and the flexibility to upgrade to newer assets at the end of the lease term.

Types of Leasing

Financial Lease (Capital Lease)

A long-term lease where the lessee assumes most of the risks and rewards of ownership. At the end of the lease term, you typically have the option to purchase the asset at a predetermined price.

Best for:
  • Assets you plan to use long-term
  • Equipment with long useful life
  • When you want eventual ownership

Operating Lease

A shorter-term lease where the lessor retains ownership and the associated risks. At the end of the term, you return the asset or have the option to renew the lease or purchase.

Best for:
  • Assets that quickly become outdated
  • Short-term business needs
  • When you want flexibility to upgrade

Benefits of Leasing

Preserve Capital

Lower upfront costs mean you can preserve your working capital for other business needs and investments.

Tax Benefits

Lease payments are often tax-deductible as business expenses, providing significant tax advantages.

Flexibility

Upgrade to newer models or technology at the end of your lease term without the hassle of selling.

Predictable Costs

Fixed monthly payments make budgeting easier and help you manage cash flow more effectively.

Off-Balance Sheet

Operating leases may be kept off the balance sheet, improving financial ratios and borrowing capacity.

Maintenance Options

Some leases include maintenance packages, reducing unexpected repair costs and downtime.

How to Apply for a Lease

Identify what type of asset you need and how you plan to use it. Consider:

  • The purpose of the asset (business or personal use)
  • How long you'll need it
  • Your budget for monthly payments
  • Whether you want to own it eventually

Prepare the following documents for your application:

  • Valid ID or passport
  • Proof of income (salary slips, tax returns)
  • Business registration documents (for companies)
  • Bank statements (last 3-6 months)
  • Details of the asset you wish to lease

You can apply in several ways:

  • Visit our office in person
  • Call us at +371 27806350
  • Email us at [email protected]
  • Fill out the online application form

Our team will review your application within 24 hours.

Once approved:

  • Review the lease agreement carefully
  • Ask questions about any terms you don't understand
  • Sign the agreement
  • Make your initial payment (if required)

After signing:

  • We'll arrange delivery or pickup of your asset
  • You'll receive all necessary documentation
  • Start using your asset immediately
  • Make your monthly payments on schedule

Frequently Asked Questions

The minimum down payment varies depending on the type of asset and your credit profile, but typically ranges from 10% to 20% of the asset value. Contact us for specific details based on your situation.

We offer flexible lease terms ranging from 12 to 60 months, depending on the type of asset and your needs. Longer terms result in lower monthly payments but higher total interest costs.

Yes, you can pay off your lease early. Some agreements may include an early termination fee, so please review your contract or contact us for details about your specific lease.

At the end of your lease term, you typically have three options: (1) Purchase the asset at the residual value, (2) Return the asset and lease a new one, or (3) Extend the lease term. The specific options depend on your lease agreement.

Yes, we offer leasing for both new and used assets. Used assets typically have lower monthly payments but may have shorter lease terms and different interest rates.

We work with clients across a range of credit profiles. While a higher credit score may qualify you for better rates, we evaluate each application individually. Contact us to discuss your specific situation.

Still Have Questions?

Our leasing specialists are here to help you understand all your options and find the perfect solution.

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