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Products of Budapest Lízing Zrt

Closed-end financial leasing

With this type of leasing service, the VAT content of the purchase price the Lessee shall pay at the start of financing, which will be refundable later, on the basis of the invoice issued by Budapest Lízing Zrt.

This product of ours is recommended if your company is obliged to regularly settle VAT, is usually in a paying-in position, and if it has free resources for paying VAT due based on the net value.

Advantages:

• the leased object gets into the property of the Lessee at the end of the duration period without paying a residual value
• EU subsidizations can usually be obtained with this construction
• VAT payment obligation does not occur monthly

Accountancy clearing of the construction from the Lessee's point of view:

Purchase price	On the basis of Lessor's invoice, Lessee shall capitalize, amortize and record it as a liability.
VAT content of the purchase price	It is refundable on the basis of invoices
Starting instalment	Decreases liabilities
Capital financed	It is a liability related to financial leasing, the capital portion of the individual monthly instalments decreases liabilities
Interest content of the monthly instalments	Costs of financial operations

Open-end financial leasing

It is recommended to companies that would distribute their VAT payment obligations over the entire duration period, and are not sure, when concluding the contract, that they want to get ownership right of the leased object.

Furthermore, it is a favorable leasing construction for companies that cannot, or can recall VAT only quarterly.

Advantages:

• Lessee shall pay the VAT content of the purchase price over the entire duration period and not at the start of financing, and it can be settled in association with the capital portion of the individual lease instalments
• should the Lessee exercise his/her right of pre-emption at the end of the duration period, he/she may acquire the right of ownership of the leased object by paying the residual value

Accountancy clearing of the construction from the Lessee's point of view:

Purchase price	On the basis of the VAT-exempt livery of seizin document of the Lessor, Lessee shall capitalize, amortize and record it as a liability.
Opening instalment	It decreases liabilities
VAT content of the opening instalment	It is refundable
Financed capital	It is a liability related to financial leasing, the capital portion of the individual monthly instalments decreases liabilities; the VAT content of the individual monthly instalments shall be settled together with the monthly instalments
VAT content of the capital portions	It is refundable
Interest content of the monthly instalments	Cost of financial operations
Residual value	Fixed-value option related to financial leasing, the full capital debt gets settled by paying it, and the Lessee acquires the property.

Operative leasing

The operative leasing construction provided through Budapest Eszközfinanszírozó Kft (Budapest Assets Funding LLC) is recommended to companies that wish to spare taxes by accounting lease charges among costs.

Advantages:

• the decision on ownership right can also be postponed to when the duration period has expired
  
• the full amount of lease charges can be accounted among costsover the duration period
  
• the lease object is an item outside of balance which spares investment budget

Accountancy clearing of the construction from the Lessee's point of view:

	Closed-end financial leasing	Open-end financial leasing	Operative leasing
Ownership right	Automatic	Option	Right of pre-emption at market price
VAT	In gross, in advance	Payable monthly, projected on the capital	On monthly instalments
Recommended self-effort	10-30%	10-30%	10-30%
Recommended duration period	12-60 months	12-60 months	36-60 months
Residual value	0%	5-10%	Market price expected at the end of the duration period
Capitalization	Lessee	Lessee	Lessor

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