In case of Financial Leasing all the profits and risks will be bared by the Client. If the client is a juridical person:
- The Asset will be booked in the Actives of the company
- The financed amount will be booked on the Passives of the company
- The Lessee has the right to declare as deductible expenses: Amortization, Financial Cost and also the other expenses such as maintenance, insurance, etc.
- In this case the PV of the lease payments from the client should be higher than 75% of the Asset value
- At the end of the Lease contract, the Lessee has the right to by the Asset with the remaining value (usually a symbolic price, far lower than the market price)