Financial Leasing
Legal term used to describe the product which is usually called Leasing in Portugal. It is a unique way to finance assets, equipment or real estate, which is clearly distinguished from a loan because the use of an asset is made available and not the delivery of capital to acquire that asset. As the asset is acquired by the lessor to make it available to the lessee, the security of the operation is increased for all parties, with inherent advantages at several levels.
Leased asset
Refers to the asset which is leased in a financial leasing contract. It is common to be called, in Portuguese, “coisa locada” or “bem locado”.
The client in a Financial Leasing contract.
The financial institution which makes Financial Leasing available.
Purchase option
At the end of a financial leasing contract there is always a “purchase option” for the lessee to acquire the leased asset. If no “purchase option” exists, than we are not in the presence of a financial leasing contract but something else.
Residual Value
It is the value over which the leased asset can be acquired by the lessee at the end of the financial leasing contract, should he so wish. Usually, this residual value is pre-agreed at the beginning of the contract.
See policy