Aliquot installment value is one time basis interest which is paid by the Lessee to the Lessor, and specific when paying in monthly annuities. This is interest which is paid on the financing amount for the period from Lessor’s payment of leasing object towards supplier to the maturity of first installment / annuity.

Debenture bond is insurance instrument which is used by Lessor for collection of possible due unpaid debt. Notarization (by public notary) and lodgment of debenture bonds is performed during Leasing contract signing.

In operative leasing, Client can pay down payment (amount including VAT) for which invoice will be issued. Down payment represents part of lease amount paid in advance, and leasing company monthly differ the revenue during leasing contract duration. Down payment is not returnable.

Financial leasing is the way of financing which allows usage to the Client and economic ownership of the leasing object, where leasing object is recorded in client’s books as long-term tangible asset and amortized. Part of monthly installment (interest) is recorded in expense, and VAT on interest in tax prepayment. For delivered Leasing object, UniCredit Leasing Croatia Ltd will issue R1 invoice to the Client. UniCredit Leasing Croatia Ltd keeps the legal ownership of Leasing object, and upon expiration of the leasing contract and fulfillment of your contractual obligations- you acquire ownership over Leasing object.

Guarantee represents interest-free deposit excluding VAT as insurance for leasing contract. Net financing amount is decreased for deposit amount, as well as net basis for calculating monthly leasing installment. Upon contract expiry and return of leasing object, guarantee is returned to the Lessee (pursuant to Operative leasing General conditions). Invoice is not issued for received guarantee, but only receipt for received guarantee, which in that form represents liability for leasing company and for Lessee long-term receivable for given guarantee.

The term leasing comes form an English word „to lease” which means to rent, or lease. Leasing is a form of financing where Lessee gets the right to use leasing object accompanied by defined fee which is paid in certain period to the Lessor. Lessee does not invest all its available assets into one-time-basis material asset acquisition, but instead he uses leasing object for contractual monthly installment.

Leasing object is object financed trough leasing. Financing objects can be vehicles (personal and commercial), boats, equipment and machinery and real estate.

Lessee is each entity which gains the right to use leasing object on the grounds of leasing contract alongside with obligation to pay contractual fee. Lessee’s can be individuals, legal entities, sole traders, freelancers, farmers and sailors.

Lessor is each entity who has the permission to conduct leasing businesses. In accordance to article 6 of Leasing Law , leasing businesses can be performed only by: a) leasing company – legal entity (share holding company, limited liability company) with headquarters in Republic of Croatia , who is recorded in Court register on the grounds of approval from Agency for conducting leasing businesses ; b) leasing company from Member States – conducts leasing businesses through branch-offices or directly on Republic of Croatia area ; c) foreign leasing company branch-office ; d) bank with headquarter in Republic of Croatia , bank with headquarter in Member States, that is Bank’s branch-office with headquarter in foreign country accompanied by conditions and in a way proscribed by regulations valid for Bank’s business conducting in Republic of Croatia.

Operative leasing is the way of financing which has the characteristics of common Leasing object lease for which user pays monthly installment which is composed from equity, interest and VAT on interests. Monthly installment is treated as expense, and accompanies VAT in tax prepayment. UniCredit Leasing Croatia Ltd is legal and economical owner of the Object, therefore liability upon operative leasing contract does not burden Client’s balance sheet (except periodical lease obligation). Upon contract expiry you do not gain the ownership right over Leasing object, and therefore can be returned to UniCredit Leasing Croatia Ltd or be replaced for new one.

Total residual value is estimated value of the leasing object after expiration of operative leasing contract, and consists of guarantee and additional residual value. Additional residual value reduces installment amount, and represents part of leasing object value which is not paid off during leasing period.

In accordance to Tax department resolution, personal vehicles are the subject for paying vehicle tax, which is calculated according to vehicle age and engine power. Client is obliged to pay mentioned tax pursuant of re-invoiced service up to its maturity date.