Letter from the Leasing Company to the supplier with the equipment purchasing terms.
- P -
Participation Lease
The first, increased lease is the Customer's participation in the investment,payable with the first lease payment. It equally decreases the initial capital amount.
Prepaid Lease
The lease that is paid at the beginning of the agreed period.
Proforma
The supplier’s binding offer for the sale of the fixed asset that details the equipment, the amount and terms of payment.
Prepayment
The lessee’s right to acquire ownership of the fixed asset before the expiry of the Contract, by paying the price that is equivalent to the prepayment of future lease amounts plus the pre-agreed prepayment penalty.
- R -
Residual Value
The last inflated lease amount, whose payment repays the Contract.
- S -
Supplier
The vendor of a fixed asset to the Leasing Company, for an agreed amount.
Sublease
The Leasing Company may provide its approval to the lessee to sublease the equipment / property to a third party.
Sub-lessee
Third person that leases the fixed asset from the lessee of Lease.
Sale & Lease Back
The Leasing Contract, whereby the owner of a fixed asset (Equipment, Property or Means of Transport), sells the fixed asset to the Leasing company, following valuation, for a specified duration and under specific terms, in order to obtain liquidity. Upon expiration of the Contract, the fixed asset returns to the ownership of the lessee once again.
