What is Leasing?
Leasing is an international term meaning the transfer of the right to use a fixed asset from a lessor (owner) to a lessee (user) for an agreed lease amount for a specific period of time in the form of a lease.
In general, financial leasing is a contemporary way of financing companies, self- employed professionals and private individuals so that they can obtain fixed assets, e.g. equipment / real estate etc. with an agreed lease amount and the predetermined redemption price upon expiry of the lease.
In Greece leasing was introduced with the enactment of Law 1665/1986, as amended and currently in effect.
Financial leasing is an advantageous financial tool, alternative and complementary to traditional lending, which combines the features of bank lending with those of capital goods leasing.
Financial Leasing can be used by companies, freelancers and/or private individuals seeking financing in order to acquire and use capital assets for their productive and investing purposes.
WHAT CAN BE FINANCED
- Real estate
- Equipment / Machinery
- Vehicles (Passenger & Commercial)
- Wind & Solar Farms
- Aircraft & Professional Yachts
Assets can be obtained with the total funding of their value but without any need for direct
disbursement of the necessary funds. There is also the possibility of selling and re-leasing your fixed assets (sale & lease back) at their current commercial value, with the aim of acquiring them at the end of the lease.
The lease duration must always be fixed and cannot be agreed less than 3 years for movable assets and vehicles, 5 years for aircraft and 10 years for real estate.
TYPES OF LEASING OFFERED IN GREECE BY THE ASSOCIATION’S MEMBERS
- Financial Leasing
- Operating Leasing
- Sale and Lease Back
- Vendor Leasing
- Syndicated Leasing
MAIN BENEFITS OF LEASING
- Financing for the acquisition of fixed assets
- Increase in liquidity
- Payment flexibility & Cost scheduling
- Tax benefits
- Combining with investment programmes (Development Laws – NSRF – Recovery Fund)