In the previous part of this article we discussed the four conditions to qualify as a financial leasing agreement, which dealt with the transfer of ownership at the end of the contract the lessee, the right to purchase the object by the lessee at the end of the contract at a price lower than the market price during the term of the contract and the total fees.

There are additional three conditions that need to be considered:

1 The agreement contains a promise of signing a new agreement at the conclusion of the existing one to use the same object or extension of the existing agreement on terms more favorable than those provided for in the existing contract. These favorable conditions will be for instance lower interest rate lease payments.

2 Provides for the termination, provided that any resulting from such costs and losses incurred by the lessor cover using.

3 Subject of the individual needs of the lease. The lease object has been adapted to the needs of the user. It can be used only by the user, without any significant changes to it.

If this still raises doubt in the outcome of that form of lease we have to do, 24iValue system will help as it has built-in checking whether the agreement is a finance lease or an operating lease.

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