The participants in a lease deal

In general, there are four parties in a lease deal:

The lessor – a leasing company that acquires property from a seller (equipment, vehicles, real estate) and provides it as a leased asset to a lessee in exchange for payment in accordance with the terms of a lease agreement, for a certain period of time and under certain conditions for temporary possession and use.

The lessee – this is you, a private entrepreneur or business that receives the leased asset from the leasing company under a lease agreement for a certain period of time and under certain conditions for temporary possession and use for business purposes.

The seller – this is the supplier of the equipment, an automobile dealership or a real estate company, which signs a contract with the lessor to supply the latter with the asset chosen by you by an agreed time and under certain conditions. The seller delivers the leased asset to the lessor or the lessee under a purchase and sale agreement between the seller and the lessor.

The insurer – this is an insurance company that, as a rule, is a partner of the lessor or the lessee. This company participates in the lease deal by insuring property, transport and other types of risks connected with the leased asset and or the lease deal.

How does leasing work, and how accessible is it?

Introduction

It all begins with a telephone call. That’s all that a Europlan officer needs to make an initial decision on lease project financing. During this short telephone conversation you will receive answers to all your questions about your project and the acquisition of equipment, vehicles or commercial real estate, or about leasing in general. Based on the information you provide about your business and your project, our staff can make an evaluation and prepare an individual lease term offer.

Agreeing leasing conditions

After the initial telephone call, we will ask you to fill out an application, containing information about your company: type of activity, registration information, contact details and a short description of the leasing project. Within 15 minutes of receiving this application and your latest financials we will provide you with a final offer.

Registration

After agreeing the lease terms, we will ask you to provide a limited number of documents (by-laws, certificate of state registration), which will take one or two days to check. Then all the necessary agreements will be drawn up between the four parties: the lessor, the lessee, the seller and the insurer.

Signing leasing agreements

After the lessor and the lessee sign a contract, Europlan will acquire the leased asset (equipment, vehicle or commercial real estate) indicated by the client from the supplier, who is also chosen by the client. The purchase and sale agreement for the leased asset signed by Europlan and the supplier details the obligations of the latter to supply the equipment by a certain date, its price and payment terms, its quality and contents, and supply and installation obligations.

Delivery of the leased asset

The leased asset is generally delivered directly to the client and Europlan, after insuring it against a range of property risks, receives it from the supplier and hands it over to you to be used in accordance with the lease agreement. From the moment the leased asset is handed over to the client, he is responsible for its safekeeping, maintenance and upkeep.

During the project

For the term of the lease agreement Europlan retains the title for the leased asset, and the client uses the asset and makes monthly lease payments. In the event of the client not making a payment scheduled in the lease agreement, the lessor has the right to recover his property and sell it on the secondary market. If the client makes lease payments on schedule for the term of the contract, the title is transferred to him after final lease payment. All revenue and profit received by the client from the use of the leased asset is the property of the client.