Leasing glossary
Advance – the amount of the lease payment paid by the lessee at the time of the conclusion of the leasing agreement.

Contract value of the leased asset – the value of the item that will be leased, agreed by the lessor and the lessee in order to calculate the lease payments, including the costs of the lessor, related to the acquisition and installation of the leased asset for use by the lessee.

Cost of leasing – the total amount of overpayment for the entire term of the leasing agreement.

Depreciation deductions – deductions that are made every month during the validity of the leasing agreement in an amount not exceeding the difference between the value of the leased asset specified in the agreement and its redemption value determined by the conditions of a lease agreement.

Financial leasing – leasing, where leasing payments during the term of leasing (at least 1 year) provide reimbursement to the lessor for at least 75 percent of the contract value of the leased asset, regardless of whether the transaction is completed by the purchase of the leased asset by the lessee or its return to the lessor.

International leasing – in the case of international leasing, the lessor or lessee is a non-resident of the Republic of Belarus.

Leaseback – a form of leasing in which an enterprise that owns an asset sells it to a leasing company so that, on the basis of an agreement with that firm, it becomes a user of this property. Such an operation is conducted with the aim of obtaining current financial resources or changing the structure of assets.

Lessee – a legal entity or an individual who, in accordance with the leasing agreement, is required to accept the leased asset for a certain fee, for a certain period and under certain conditions for temporary possession and use in accordance with a leasing agreement.

Leasing – a type of investment activity for the acquisition of property and transfer it on the basis of a lease agreement to third parties for a specified fee, for a certain period of time and on certain conditions, stipulated by the leasing agreement, with the right to buy out the property of the lessee, or without it.

Leasing broker – an independent subject of the leasing market, which, through a full analysis of the leasing services market, established contacts with suppliers and leasing companies, optimizes and accelerates the interaction between the three participants in the leasing transaction (leasing company, supplier and client), thereby reducing the transaction costs of the three parties.

Leasing interest (interest rate on leasing) – the interest rate charged on the balance of the debt at the value of the property.

Leasing property – property that is leased. Leasing property during the entire term of the leasing agreement is the property of the lessor.

Leasing term – the period for which the leased asset is transferred to the lessee for temporary possession and use in accordance with the leasing agreement. If the object of leasing consists of several objects, the date of transfer of the leased asset or its components is determined by the leasing agreement.

Leasing transaction – a set of agreements necessary for the implementation of a leasing agreement between the lessor, the lessee and the seller (supplier) of the leased asset.

Lessor – a legal entity that, at the expense of its own funds or funds attracted from outside, acquires property and provides it as a leased asset to a lessee for a certain fee, for a certain period of time and under certain conditions for temporary use.

Operational leasing – leasing, where leasing payments during the leasing period provide reimbursement to the lessor for less than 75 percent of the contract value of the leased asset and upon the expiry of the lease term the lessee returns the leasing object to the lessor.

Percentage increase in the cost in leasing – the ratio of the amount of overpayment under the lease agreement to the value of leased property.

Price of the leasing agreement – the aggregate of lease payments, as well as the redemption value, if the terms of the contract provide for the purchase of the leased asset.

Rent – a fee that is paid by the lessee under a lease agreement. Rent is carried out in equal parts and consists of the value of the property and the leasing interest.

Schedule of leasing payments – the procedure of leasing payments agreed by the lessor and the lessee. It contains the dates (terms) and the amount of payments for leasing.

Seller (supplier) – an individual or legal entity that, in accordance with the contract of sale with the lessor, sells to the lessor in due time the property that produced (purchased) by it, which is the subject of leasing.

Subject of leasing – any non-consumable property, including property complexes, real estate that can be used for entrepreneurial activities.

Subleasing – a special kind of relations arising in connection with the assignment of the rights to use the leased asset to a third party, which is formalized by a subleasing contract. The person carrying out the subleasing takes the object of leasing from the lessor under the leasing agreement and transfers it for temporary use to the lessee under the subleasing contract. A lessee's assignment to a third party of its obligations to pay leasing payments to a third party is not allowed. When transferring the subject of leasing to the subleasing, the consent of the lessor in writing is binding.

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