Financial leasing provides complete freedom to use construction machines and is an excellent tool for financing investments, both for large listed companies as well as small private businesses.
In financial leasing, the leased item is part of the fixed assets of the Lessee, who makes depreciation deductions. Lease payment consists of interest and capital. The interest and depreciation are deductible according to the Income Tax Act.
Caterpillar Financial Services retains ownership of the machines throughout the term of the lease. Property passes automatically to the Lessee upon payment of the last instalment of the lease. VAT (23%) of the value of the machine and the interest is paid by the Lessee at the beginning of the contract.