Leasing

Leasing

Leasing

What is Leasing?

Financial Leasing

Financial Leasing is a method of finance wherein the right to use investment goods is granted to the lessee against payment of predetermined leases with the title thereof retained in the leasing company, and the title on the investment goods is passed to the lessee at the end of the contract term stated in the leasing agreement.

Leasing assumes and plays a significant role in increase of productivity and profitability by allowing companies to use investment goods by leasing, rather than purchasing them, thereby having the chance to use their working capital for meeting other needs of them.

The goods to be purchased by way of leasing are determined by the lessee. Throughout the term of leasing, title is retained by leasing company, while the right to use investment goods belongs to the lessee. Providing that the lessee pays all leases in accordance with the leasing agreement, title on the investment goods is passed to the lessee against payment of a symbolic price at the end of contract term.

Its difference from usual crediting relations is that the credit facility is not disbursed in cash, but is granted and used in kind.

Operational Leasing

Title on the subject goods is retained by the operational leasing company both during and at the end of leasing term, and upon expiration of leasing term, the equipments are redelivered and returned to the operational leasing company, and the leasing agreement terminates.

The lessee prefers to make use of benefits of the equipment, rather than owning the title thereof.

Leasing Process

  • Please send a pro-forma invoice of the equipment selected by you to us.
  • We are going to prepare and submit to you a payment plan fit to your cash flow.
  • Send to us all documents required for application.
  • We are going to complete your crediting process as soon as possible.
  • If your crediting process is completed positively, a contract is to be signed promptly between you and our Bank.
  • Through our specialized team, we are going to deliver the equipment to you as quickly and safely as possible by relieving you from all kinds of operational workloads (purchasing, importation, letter of credit, loading, insurance, delivery, etc.).
  • Pay your leases on due dates thereof, and take over your equipment by paying a symbolic price at the end of maturity.

Advantages of Leasing

  • Fixed Interest Rate
  • Mid- and Long-Term
  • Minimum Guarantee
  • Exemption from all kinds of taxes, imposts and duties
  • Right to prepay the loans before the end of maturity
  • 100% Financing
  • VAT incentives for Some Certain Goods
  • Operational Services
  • Privilege to pay VAT in installments

Leasing Goods

  • Passenger Cars and Commercial Vehicles
  • Heavy-duty Machines
  • Medical Devices and Equipments
  • Textile Machinery
  • Metal Processing Machinery
  • Other Manufacturing Machinery
  • Vessels and Sea Crafts
  • Commercial real properties such as workplaces, offices, hotels, hospitals, factories, etc.
  • Office and bureau machinery and equipments
  • Tourism equipments
  • Technologic Equipments
  • Properties characterized as integral parts and annexes
  • Properties characterized as integral parts and annexes

Frequently Asked Questions About Leasing

Only legal persons can engage in leasing.
The ownership of the equipment rests with Burgan Finansal Kiralama A.Ş., the lessor.
Domestic and overseas purchases covered by subsidy certificates can be financed through leasing. If subsidized investments are executed through leasing, the first thing to do is to assign the subsidy to the lessor.A new subsidy is issued to the benefit of Burgan Leasing for the portion to be financed through leasing.This would enable Burgan Leasing to utilize the subsidy elements pertaining to the machinery covered by leasing (e.g. tax exemptions). Such exemptions are then reflected in the cost presented to the lessee.
The amendment to the Leasing Law no. 3226, with effect from 1 July 2003, made it impossible to register leasing rents as expense any more.According to the new arrangement, rent invoices are now issued to specify the principal and the interest separately. The invoice specifies principal and interest as separate items, whereupon the Lessee can register only the interest portion as an expense. On the other hand, the lessee would be able to register the right to use the asset covered by leasing among the assets on its balance sheet, subject to revaluation and depreciation. Ownership of the asset, however, shall remain with the leasing firm.
Under the leasing law, Burgan Leasing is under obligation to procure insurance for the goods it purchases. The law attaches particular importance to the goods remaining operational and in use during the term of the contract, because the loan transaction in question is completely associated with the goods. That is why insurance is specified as an obligation to perform during the term of the contract.
All you have to do is to file a leasing request form, or call the customer representatives at our Firm or at a branch of Burgan Bank.
Often the transfer of ownership of the leased property to the lessee takes place at the end of 4 years. However, the transactions involving computers, printers and photocopiers, as well as the automobile leasing transactions of the firms by automobile leasing firms as well as the firms engaged in marketing operations, with respect to the transactions regarding lorries, trucks, and vans with a weight of up to 7 tons as well as real estates, the term applied is 2 years. Furthermore, the air vehicles and medical devices to be procured from overseas (outside Turkey), and the air vehicles, cargo ships, buses for international and inter-city passenger travels, construction machinery, lorries, film printing machines, and medical devices are subject to a term of 2 years.
The lease payments are based on the price of the asset purchased, the term involved, and the payment plan of your choice.
Any charges regarding notarization as well as any expenses regarding customs and goods purchases for import transactions are charged to the lessee as leasing expenses.
No. New transactions can be executed only on the basis of a new contract and a new contract number, whereas the lessee pays the applicable leasing charges.
Your contract will be terminated if you do not comply with the terms of the contract.
The Leasing Contract and the collaterals received under the contract are exempted from taxes, duties and charges.

Branch Contact Information

ADRESİLİLÇEŞUBETELEFONFAX
Maslak Mah. Eski Büyükdere Cad. No:13 34485İstanbulSarıyerGenel Müdürlük0 212 371 42220 212 371 42 90
Değirmiçem Mah. Mithat Enç Cad. No: 3/2GaziantepŞehitKamilGüneydoğu Anadolu Şube0 342 230 75500 342 231 54 81
Arjantin Cad. No: 9 GaziosmanpaşaAnkaraÇankayaAnadolu Şube0 312 385 82920 312 418 22 62
Odunluk Mah. Akpınar Cad. R Plaza No: 21 İç Kapı No: 10 K: 4BursaNilüferGüney Marmara Şubesi0 224 224 49700 224- 364 67 41
Saray Mah. Dr. Adnan Büyükdeniz Cad. Cessas Plaza 2. Blok no: 4 İç Kapı No: 18İstanbulÜmraniyeİstanbul Anadolu Şube0 212 371 42220 212 371 42 90
Cumhuriyet Bulvarı No: 140/1İzmirAlsancakEge Şube0 212 371 42220 212 371 42 90
Cemalpaşa Mah. Atatürk Cad. No:76/AAdanaSeyhanÇukurova Şubesi0 322 351 51230 212 371 42 41