Leasing

Lending out movable goods (chattels) and immovable assets (real estate) on the basis of a rental-type agreement for use. The essential feature is the distinction between finance leasing contracts and operate leasing contracts. The former is characterised by the lessor's right to full amortisation, i.e. that even in the case of the calculation of a residual value at termination of the contract the lessee is obliged to buy the leasing object at the residual value. Finance leasing contracts are principally irredeemable during the contract period. Operate leasing contract, however, do not include the lessor's right to full amortisation by the lessee. Recycling opportunity and risk remain with the lessor. Operate leasing contracts are possible if the leasing objects can be marketed profitably as used objects, e.g. industrial trucks.