Leasing

Lease finance for business investments over CZK 1 million, with an option to purchase leased assets

Select financial or operating lease
in line with your business needs

Lease payments represent operating cost
and reduce your taxes

Cover lease payments from the revenue
of your investment

Optimise your investment revenue and expenditure

Finance your business development, while preserving company liquidity
Leased assets are purchased by KB and leased to lessee for lease payments
Make lease payments from revenue generated by leased assets in the form of regular or irregular lease payments
Your lease payments are tax deductible
Select either financial or operating lease
Fixed and variable interest rates available
Variable interest rates linked to reference rate (PRIBOR) that reflects the money market development
Flexible structure of repayment schedule
Repayment term in line with client’s needs and the period and form of use of leased assets
Optional prepayment that may be used as an advance payment for future lease payments or as an extraordinary lease payment

Long-term lease with subsequent purchase of leased assets
Minimum lease term depends on the classification of leased assets in terms of their depreciation

First depreciation group – minimum depreciation term of 36 months
Second depreciation group – minimum period of 54 months for lease finance (statutory depreciation term is 60 months)
Third depreciation group – minimum period of 114 months for lease finance (statutory depreciation term is 120 months)

Purchase price as of the financial lease agreement expiration cannot exceed the net book value calculated using straight-line depreciation method
Optimal tax savings allow full depreciation
Minimum sales price (e.g. 1% of the asset purchase price) is set to ensure it is not necessary to activate assets following transfer of ownership
Tax avoidance (optimisation)
Supports creation of so called “latent” reserves of the lessee’s fixed assets

Long-term contractual relationship
Lessee uses leased assets for a fixed term in return for regular lease payments
As of the lease termination date, the lessee may return the given assets to the lease company or use an option to buy them at a predefined sales price
Lessees may constantly renew their production resources without having to purchase such assets after lease termination
For financially sound companies only
In cooperation with suppliers who guarantee repurchase of leased assets after they are returned by lessee
Operating lease arrangements must be consulted with a relationship manager or lease specialist on a case by case basis

Lease Finance is intended for business clients, who wish to finance investments over CZK 1 million.

This product is provided by SG Equipment Finance Czech Republic s.r.o., member of the Société Générale Group.

Useful information