| Definition | ||
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Financial lease is a type of mid and long term credit facility which is for purchasing movable asset (leased asset). Leasing company (Lessor) holds the ownership of the leased asset. Customer (Lessee) pays the monthly rental including principal and interest during the lease tenor. When the lease period expires, the ownership of Leased asset will be transferred to Lessee. |
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| Benefits from financial lease | ||
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Bank Credit line can be preserved to allow better funding flexibility.
Long-term financing and fixed lease rent make cost control easier.
Letter of credit opened for leased assets can be arranged.
Fast and simple application procedure to meet the timing of customer demand.
Inflation is hedged and budgeting is less restricted.
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| Customer (Lessee) | ||
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Individual
Enterprise
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| Leased asset | ||
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Vehicle.
Machinery, production line.
Construction equipment.
Office automation machine.
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| Lease tenor | ||
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The lease tenor is applied according to Lessee’s demand and Leasing company’s policy. The lease tenor of financial leasing
is usually from 2 years to 5 years.
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| Lease interest rate | ||
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The lease interest rate is VND or USD lending interest rate, is applied at the fixed rate or the floating rate according to two
parties’ negotiation.
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| Lease application documents | ||
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Legal documents
- Business license and amendment, if any
- Tax code certificate
- Charter
- Company seal certificate
Financial document
- Financial reports for the recent 2 years
- Monthly VAT report for the recent 2 years
- Statements for the recent 6 months
Documents relevant to lease(s)
- Lease application form (CILC’s standard form)
- List of fixed assets (with depreciation figure)
- Offer sheet from suppliers of leased assets
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