Financial Solutions

MEC Europe is able to offer you financial solutions for leasing your MEC equipment.

General information

Leasing is a means of funding tangible fixed assets. The leasing contract sometimes includes an option to buy. There are two basic leasing concept available, finance lease (on-balance-sheet item ) or operating lease (off-balance-sheet item).

Accounting aspects

• The lessee depreciates the assets (on-balance-sheet item)
• The lessee books lease payments to general expenses (off-balance-sheet item)

The leasing company pays the VAT on the purchase price and recovers it in full. With operating lease the lessee spreads VAT payments, because they pay VAT on the lease payments. With finance lease the VAT on the lease amount is charged in advance and will be debited together with the first monthly rental payment.

Advantages

• Leasing involves 100% funding, but an own contribution is possible;
• Leasing is an additional funding option;
• Fortis Lease does not require any in rem securities (such as a mortgage);
• Fortis Lease pre-finances the VAT. Fortis Lease settles the invoice inclusive of VAT and the customer pays VAT on the lease payments;
• Off-balance-sheet item: makes it possible to book capital equipment to costs more quickly;

For further information please send your inquiry to: account@meceurope.net