A leasing transaction is a legal arrangement in which the lessor acquires a leased asset by purchasing it from the supplier, thereby obtaining ownership of the asset, and grants the lessee the right to use that asset for a specified period. The lessee, in turn, undertakes to pay a fee for its use.
Financial leasing is intended for those who wish to acquire ownership of the leased asset at the end of the lease term.
Main characteristics:
The leased asset is recorded and depreciated in the lessee’s accounting books.
The lessee’s operating expenses include both depreciation and interest.
Upon delivery, the lessor issues an invoice for the leased asset, based on which the lessee may be entitled to a VAT refund (depending on the lessee’s business activity and the nature of the asset).
The unpaid portion of the leased asset’s value represents a long-term liability in the lessee’s balance sheet.
The down payment reduces the financing amount and is not subject to interest.
By paying the residual (purchase) value—lower than the market value—the lessee acquires ownership of the leased asset.
Operational leasing has the characteristics of a business rental, as it primarily concerns the use of the leased asset without the intention of acquiring ownership, with the possible option of replacing it with a new asset at the end of the contract.
Main characteristics:
The leased asset is recorded and depreciated in the lessor’s accounting books.
The lease payment is treated as an operating expense for the lessee (VAT on invoices may be tax-deductible depending on the lessee’s business activity and the leased asset).
The lessee’s balance sheet is not additionally burdened, as there are no long-term liabilities.
A security deposit is a monetary payment that serves as collateral to cover any outstanding claims the lessor may have against the lessee after the expiration or early termination of the leasing contract. No invoice is issued for the deposited amount. The lessee records the security deposit as a long-term receivable. Upon the expiration or early termination of the contract, the lessor returns the full amount of the deposit if there are no outstanding claims under the contract, or returns it reduced by the amount of any outstanding claims, if such exist.
An advance fee is recorded by the lessee in their accounting books as prepaid expenses and is expensed monthly over the duration of the contract. The lessor records the advance fee as deferred income and also recognizes it monthly as income over the contract term. In the case of early termination of the contract, the unused portion of the advance fee is refunded to the lessee (reduced by any outstanding claims, if applicable). Upon expiration of the contract, no refund is made to the lessee, as the entire advance fee has been utilized (expensed).
A down payment represents the lessee’s participation in financing a certain percentage of the purchase value of the leased asset.
The lessee is obliged, at their own expense and on behalf of IMPULS-LEASING d.o.o., as the owner of the leased asset, to timely and properly conclude the required mandatory insurance for the leased asset for the entire duration of the contract. If the leased asset is a vehicle, the lessee must conclude a motor liability insurance policy with supplementary driver and passenger accident coverage and pay the premiums on time throughout the lease term, providing copies of the policies to IMPULS-LEASING d.o.o. without delay.
For this purpose, the lessee must, at their own expense and for the entire contract term, conclude a property insurance policy with a first-class insurer acceptable to IMPULS-LEASING d.o.o. If the leased asset is a vehicle, the lessee must also conclude a comprehensive (full) insurance policy covering all risks related to accidents and theft, and pay the premiums timely for the entire lease period. The deductible may not exceed 10%. The insured under the property or comprehensive insurance policy is IMPULS-LEASING d.o.o., which must be unconditionally recorded in the insurance policy.
The lessee is required to provide the originals of all insurance policies to IMPULS-LEASING d.o.o. immediately after they are concluded. The lessee bears full responsibility for any deductible.
FINANCIAL LEASING
A financial leasing contract expires on the date the residual (purchase) value of the leased asset is due, after all outstanding claims recorded in the contract account have been settled. IMPULS-LEASING d.o.o. will perform the final settlement of the leasing contract and will prepare and submit all documentation for the transfer of ownership on behalf of the lessee.
OPERATIONAL LEASING
In operational leasing, it is strictly prohibited for the lessee to purchase the leased asset and become its owner at the end of the contract. After the contractual relationship between IMPULS-LEASING d.o.o. and the lessee expires, the lessee returns the leased asset to IMPULS-LEASING d.o.o., which then initiates the sale process of the asset, aiming to achieve a sale amount at least equal to the agreed residual value. The lessee has the option to propose a buyer for the leased asset.
PARTIAL DAMAGE
The lessee reports and documents the damage with the insurance company.
The repair order for the leased asset to an authorized repairer is issued by IMPULS-LEASING d.o.o. upon written request.
The repair invoice for the leased asset is issued by the authorized repairer to IMPULS-LEASING d.o.o.
The insurance payout is made to the account of IMPULS-LEASING d.o.o., which then pays the repair invoice to the authorized repairer.
If the insurance payout is reduced, the lessee is issued an invoice for the re-invoiced portion of the damage cost. Reasons for reduction may include unpaid insurance premiums, damage malus, depreciation, non-recognition of repairer invoices due to excess hours, deviations from the damage assessment, etc.
The lessee may directly contest the payout amount with the insurance company. In the event of a subsequent insurance payment, the re-invoiced damage participation cost is reversed for the amount paid.
IMPULS-LEASING d.o.o. charges the lessee a damage settlement fee for each processed claim in accordance with the current price list.
The first registration of the leased asset is carried out by the employees of IMPULS-LEASING d.o.o. upon submission of the registration documentation prepared by the lessee or the supplier, after the lessee takes possession of the leased asset and after the technical inspection of the asset has been completed.
The following documentation is required for the registration of a new leased asset:
A copy of the leasing contract
Original supplier invoice addressed to IMPULS-LEASING d.o.o., sent to the branch where the asset will be registered
Supplier authorization certificate - if the supplier is part of an authorized dealer network of an importer, or if the importer and seller are not the same legal entity
Two registration sheets from the technical inspection issued to IMPULS-LEASING d.o.o.
Original mandatory insurance policy (two copies)
A copy of the classification notice according to NACE for the lessee if it is a legal entity; a copy of the trade license if the lessee is a sole proprietorship; a copy of the establishment decision if the lessee is an independent professional; or a copy of the ID card if the lessee is an individual
Related invoices, if the leased asset is used
Upon issuance of the final monthly installment under the financial leasing contract, the lessee is also issued the purchase installment with the due date corresponding to the end of the contract according to the repayment plan. After payment of the final installment and settlement of all remaining outstanding claims, the final settlement of the contract is prepared, and the lessee is provided with all documentation necessary for the transfer of ownership of the leased asset, which includes:
3 copies of the R1 invoice for the leased asset issued at the activation of the leasing contract, stamped and signed by IMPULS-LEASING d.o.o.
Original vehicle registration booklet, if the leased asset is a vehicle and the leasing contract was concluded before 01.07.2013
Power of attorney for deregistration of the leased asset, if the asset is a vehicle
Certificate of settlement of the lessee’s obligations
FINANCIAL LEASING
By making payments according to the informative calculation during the term of the leasing contract, or upon completion of all payments in the case of normal contract expiration, the lessee acquires the right to transfer ownership of the leased asset.
OPERATIONAL LEASING
In operational leasing, it is strictly prohibited for the lessee to purchase the leased asset and become its owner. After the expiration of the contractual relationship between IMPULS-LEASING d.o.o. and the lessee, or during its term, the lessee may propose a buyer for the leased asset, with a minimum offer equal to the outstanding residual value of the contract.
In the event of irregular payment of monthly obligations by the lessee (in accordance with Article 59 of the Leasing Act - if the lessee has not paid two consecutive installments), the leasing contract may be terminated due to non-payment, and the lessee will be called to return the leased asset. On the day of the asset’s return to IMPULS-LEASING d.o.o., and after signing the vehicle handover report, the contract is terminated as of the date of signing the report, and the lessee will no longer receive invoices for monthly installments/rent.
An authorized court expert will then conduct an appraisal to assess the market value of the leased asset at the lessee’s expense. The appraisal report is sent to the lessee by registered mail upon the lessee’s written request. If the court expert’s appraisal identifies damages that would be covered by comprehensive insurance, a damage assessment is organized and the leased asset is repaired. The leased asset is then sold through a public announcement by IMPULS-LEASING d.o.o., to the highest bidder.
The lessee is responsible for any damage that IMPULS-LEASING d.o.o. may incur as a result of the contract termination. Consequently, IMPULS-LEASING d.o.o. is entitled to claim from the lessee payment of all due unpaid lease installments, the outstanding residual value under the contract, and any other costs that IMPULS-LEASING d.o.o. is authorized to charge the lessee under the General Terms and Conditions for concluding leasing contracts.
