Questions and Answers

The most frequently asked questions about the purchase of assets of leasing

Lease is a contractual agreement under which one party, referred to as the lessor, owner of a particular asset, grants the right of use of this asset to a second party, referred to as the lessee for a particular period and under a particular repayment schedule. After the expiry of the validity period of the lease agreement, the lessee may become the owner of the leased asset.

Pursuant to the Bulgarian law the lease agreement is an agreement by virtue of which the lessor grants to the lessee the right to use a particular asset for compensation for an agreed period. Agreements for leasing an asset, which include a clause entitling the lessee to acquire the ownership over the asset under particular terms and conditions (lease agreements with purchase) are also treated as lease agreements.

The most popular types of financing are the finance- and the operative leasing. Recently the so-called Fleet Management – management of vehicle fleets is a service that is sought increasingly often.

  • Finance leasing - a form of financing, where the client uses a fixed asset in exchange for payment, and after the expiry of the leasing contract the client may acquire the asset. The finance leasing further divides into: 
    • Open end - with the option for acquisition of the asset at the end of the leasing contract – grants the client the option to choose whether to pay the remaining value of the asset, thus becoming owner of the lease asset, or to renounce this right
    • Closed end - where the title transfer at the end of the lease contract is obligatory
    • Closed end and VAT deferral - where the title transfer at the end of the lease contract is obligatory
  • Reverse Leasing - in this type of leasing the supplier and the client are one and the same person. It is usually used with the purpose of freeing necessary financial resources.
  • Inventory Leasing - special form of finance leasing, where the inventory reserves of a trading company may be financed.
  • Operative leasing - a type of rental contract, where the client uses the asset in exchange for rent for a certain period of time and after its expiry, the client returns the asset to the Lessor.
  • Fleet management - a type of leasing contract, where besides the purchase of a vehicle, the Lessor also takes care of the management and maintenance of the client’s vehicle fleet.

The lease is used for the acquisition of the required equipment, without affecting in any way any granted bank credit financing the working capital of the company.

No, no additional security will be required, the down payment is a sufficient commitment by the lessee. Exceptions to this rule may be the cases, where a pledged asset is required for parts of production lines, owned by the lessee, which are technologically related to the leased equipment and supplement it in a manner, which may make possible an optional secondary marketing of the whole line only.

The financing provided by UniCredit Leasing is in Euro, but it is not a problem to make the payments to suppliers in another currency.

In the case of finance leasing, despite that from a legal point of view the asset remains the property of the lessor and is registered on the lessor’s name, but due to the fact, that all risks and benefits pertaining to the ownership of the asset have been essentially transferred to the lessee, after its delivery the asset is registered in the balance of the lessee and the latter can benefit from the amortization expenses. Depending on the asset type the Lessee may also have the opportunity to get his VAT refunded.

The down payment is payable upon the conclusion of the lease agreement and functions as the lessee’s participation with own funds. It is a percent of the value of the leased asset. No interest is accrued on it and it is payable upon signing the lease agreement; its payment is a precondition for its coming into effect.

The net credit is the amout which we finance the asset chosen by you with. For example: if you have selected a car at 50 000 BGN and your down payment is 20%, i.g. 10 000 BGN, so the net credit amount would be 40 000 BGN.

The down payment has to be paid to an account of UniCredit Leasing by wire transfer and the advance payment made to the supplier cannot be recognized as such. In such cases there is an option for the supplier to reimburse the client with the advance payment and for the client to respectively effect the down payment to UniCredit Leasing or to deduct the payment by executing a three-party agreement, whereby the supplier will invoice the payment to UniCredit Leasing, and the leasing company - to the client respectively.

The payment is made in equal monthly installments, including repayment of the principal and the monthly interest on the principal balance.

By exception, in the cases of a seasonal business, the installments may be coordinated with the client’s cash flows.

Irrespective of our answer, our clients do not pay for this service.

Your accountant will be the person who should know best. We are ready to offer a lease schedule, which will fit best the expenditure policy of your company.

Certainly. Choose the goods and find the best price according your needs and give us a call. Even if you doubt the selection, we will discuss the topic you are interested in and offer some alternatives.

UniCredit Leasing is the only leasing company in Bulgarian with a working portfolio model - every client has his/her own personal manager to contact for advice and assistance.

Yes, UniCredit Leasing grants the option for another lessee to step in the leasing contract. For such purpose the Lessee must notify UniCredit Leasing in writing, and must have paid all of his due contract amounts. The old lessee remains in the contract as a guarantor of the new one. No penalties are charged for the step-in of a new lessee. According to the company tariff the new Lessee will pay an administrative fee amounting to 1% of the remaining principal, but in any case no less than 200 BGN, VAT not included.

UniCredit Leasing provides the possibility for repayment of the equipment before the expiry of the validity period of the lease agreement. For this purpose, the lessee has to notify UniCredit Leasing in writing. The lessee has to pay the full amount of the principal balance according to the repayment schedule together with a penalty for advance payment if the contractual interest is fixed.

Yes, it is preferable to have a power of attorney for driving a leased vehicle even if you drive in the country only. When leaving the territory of the country the power of attorney becomes obligatory. The first power of attorney is free of charge, each subsequent one will be charged according to the company tariff.

You only need to send us – in the manner you prefer, by fax, email or correspondence address, a Power of Attorney Request, accompanied by a copy of valid Casco, TPL and Green Card.

The time needed for issuing such document is up to 48 hours from the receipt of the required set of documents. The said time also includes the time needed for notarization of the document.

Considering the changes in the Road Traffic Act, promulgated in the State Gazette, vol.10 dated 01.02.2011 regarding the regime of sanctioning of offenders according to the said Act, the most recent changes introduced the practice of issuing an electronic notification of a fine for the perpetrated administrative offence. The electronic notifications are sent with a latter with proof of receipt either to the owner of the respective vehicle (the Lessor) or to the user (Lessee), if such was specified in the registration certificate. In case you wish such electronic notifications to be sent by the Traffic Police to your address you need to undertake the following steps:

  • To check whether you were registered as a user in point C.3.1. of Part II of the Registration certificate (lesser certificate).
  • In case the point C.3.1. of Part II of the Registration certificate contain the details (name and address) of the Lessor, and not yours, you are to initiate the procedure for your registration as user in the Registration Certificate – Part І and ІІ, and for the purpose contact your personal leasing manager or call 02/97 65 100 or 02/97 65 200 for further instructions.
  • To pay the registration fee amounting to 36,00 /thirty-six/ BGN, for which you will be issued an invoice.

It is very important to keep in mind that unless you register yourself as user, then the Lessor, in the capacity of owner, will continue receving at his address the electronic nofitications for fines imposed for offences in the sense of the Road Traffic Act. This is why we will pay the imposed fine, and the amount will be re-invoiced to the Lessee as expenses related to the leased asset’s management.

Yes, the choice of the insurance company reflects the preferences of the clients, and consultations on this matter as well as on the insurance activity are provided by UniCredit Insurance Broker. The purpose is to find a complex solution in order to insure maximal coverage and preferential conditions You can learn more about the Broker here.

UniCredit Insurance Broker provides standard insurances according to the type of the asset that was leased, as well as products that were specially developed for the clients of our company. The examples include: „GAP insurance” and „RMV keys”. You can find detailed information here.

You must notify us in a manner that is most convenient for you – by fax, email or to our correspondence address, by sending a declaration – communication form to the attention of your own personal manager.

Yes, of course. UniCredit Leasing and UniCredit Insurance Broker have created еLeasing and eBroker for the convenience of its clients. These are free mailboxes, where the companies send the monthly correspondence in electronic format. You can log on. The new services are available on the main page of the corporate sites.

Please send us a declaration – communication form in a manner that is convenient for you – by fax, email or to our correspondence address.

Please contact your personal manager or notify us in a manner that is most convenient for you. This service is paid according the company tariff.

Send us a notification letter, free text, in the manner that is the most convenient for you, and be sure to always specify name and contact details (phone number and email). Our employees will provide you with feedback containing details that are relevant for your case.