Basic term of contract
 Book value of the leasing object
 Capital leasing (financial leasing)
 Cost value of the leasing object
 Denominated leasing
 First installment (special payment)
 Guarantee deposit
 Leasing
 Leasing contract
 Leasing object
 Leasing rate
 Leaseback
 Lessee (beneficiary)
 Lessor (financier)
 Object risk
 Operating leasing
 Purchase (end value)
 Purchase of the leasing object by the lessee (purchase option)
 Security of claims from the leasing contract
 Service charge
 Zero-interest leasing

The term of the leasing contract during which the contract can be but must not be continued. The term is mostly equal to minimum 40% of the normative depreciation time in case its object is based on depreciation rates of mobile economic goods and depends upon the character of the leasing object and the requirements of justified or applicable provisions.

At the end of a contractual term the book value of the leasing object forms the difference between its initial value and the sum of depreciations carried out. It is the basis for calculating the price at which the leasing object can be marketed by the lessor, whereby this marketing process can take place to the benefit of both the lessee and a third person.

A leasing form, in which the object is included in the lessee’s assets, and simultaneously remains in the ownership of the lessor. The depreciation of the contractual object is carried out by the lessee, which can simultaneously render the leasing installment (interest rate) to be deductible in tax (interest rate share). The leasing object is handed over to the customer for a usage period which is similar to the period of its operational soundness. After the contractual term the lessee can either acquire the leasing object or include it in his assets free-of-charge.

Cost value of the leasing object including eventually associated extra costs (transport, transport insurance, customs duty, import tax), which are reproduced in accounts books of the leasing company and depict a basis for the calculation of the leasing rate, i.e. the payment by installments by the lessee to the benefit of the lessor.

A kind of operating or capital leasing, where the magnitude of the leasing rates is determined in foreign exchange and the payment in Polish Zlotys.

The equity capital rendered by the lessee when concluding a leasing contract. For the lessee the first installment at the time of payment is recognized as a business expense.

A charge paid by the lessee for safeguarding demands made by the lessor in connection with improper fulfillment of the operating leasing contract. If such an event doesn’t occur, the security will be paid back to the lessee once the leasing contract is terminated. Since the guarantee deposit is refundable, it is not a valid business expense for the lessee.

A type of service that makes it possible to utilize economic goods (e.g. machines, real estate, vehicles) without the necessity of buying them and as such spending a substantial amount of money at once. The leasing object is property of the leasing company until the date on which the repayment of all leasing installments established for this contract has been made by the lessee. After the leasing contract expires the lessee can buy the leasing object or included it in his assets depending upon the leasing form. Independent of the leasing form the contractual end is always connected with signing an end contract about the transfer of ownership or the purchase of the leasing object between the lessee and the lessor. Leasing is an advantageous, alternative financing form of economic activity in comparison with credits and loans.

A contract on the basis of which the right of use of an object is transferred to the lessee for agreed payment for a specified period and under certain conditions.

An economic good (mobile good or real estate), license, or immaterial or legal values, by which the right of use is transferred from the lessor to the lessee owing to a leasing contract.

A charge mentioned in a leasing contract, which is paid by the lessee to the lessor for using the leasing object. It can take the form of equal rents (equal rates), degressive (sinking rates), progressive (increasing rates; happen very rarely) as well as the form of an individually determined rent which for instance accounts for a seasonal nature of the lessee’s activity.

A form of operating leasing by which the remaining economic good from the previous ownership of the lesser is sold to the lessor and then it is leased by the latter for a predetermined charge. Through such a leasing form the customer gets the mutual fund back, which he had invested when buying the economic good, and at the same time he uses the object that in the meantime has become property of the leasing company.

A customer of a leasing company (economic subject or natural person), who takes custody of the contractual object of the leasing company based on the entitlement of a leasing contract. According to the provisions of the Civil Code the lessee is termed as beneficiary.

Economic subject carries out the procurement of the object selected by the customer (lessee) and “leases” it as soon as possible through a leasing contract under the agreed conditions. According to the provisions of the Civil Code the lessor is named as financier.

The lessee bears a big share of the investment risk on the object. The selection of a suitable leasing object and a correct supplier as well as keeping and servicing the leased object also lie under his responsibility. At the end of the leasing contract the investment risk such as the market value risk is transferred to the lessor.

The mostly common leasing form, where the contractual object is included in the asset of the lessor and “leased” to him. The lessor depreciates the object and the lessee can fully deduct the lease rent (leasing rates) from tax. At the end of the contract the lessor is given back his leasing object. In practice it is bought by the previous user for a predetermined price (mostly this is the difference between the purchase value of the leasing object and the sum of depreciations already made. The contractual term depends upon the amount of the depreciation rate and lies generally between 18 and 60 months.

A contractual sum for which the leasing company is obliged to sell the contractual object to the previous user. This value is mostly lower than the value that would ensue from the normative wear of the leasing object and can deviate from its market value. If the buyer is the lessee, then he will not be subject to new purchase price verification by the tax office.

Right of the lessor to acquire the leasing object after the basic term has expired. This right forms a requisite component part of the financial leasing contract, whereby it is conditional upon the wills of the parties in the operating leasing contract.

The objective of the rights agreed upon and to which the lessor is entitled in the contract is to minimize his risk associated with the leasing contract. The most commonly used security is one’s own blank bill.

An amount covering the administrative costs of the leasing contract.

A form of operating leasing whereby the sum of all leasing rates is equal or similar to the price of the leasing object. In practice this means that after all the leasing rates have been paid by the lessee, the latter bears the same costs as he would if he made a lump-sum cash payment for the object. Owing to the discounts negotiated with the manufacturer, the leasing companies offer “zero leasing“. The zero-leasing contracts are usually concluded in a foreign currency.