COMPARASION TABLE FINANCE LEASE  LOAN NOTES (*)
FINANCE SUBJECT Asset (equipment, vehicles, production lines…) Money/ capital  
OWNERSHIP OF THE SUBJECT  Lessor  Customer (borrower)  
AMOUNT FINANCED  Can be up to 100% value of asset including its associated expenses (*) Basically 70-80% value of asset, excluding its associated expenses depending on the trustworthiness of the lessee
 COLLATERAL  Basically, unnecessary (*)  Basically, additional collateral is required depending on the trustworthiness of the lessee
 DEPRECIATION Can accelerate into the lease term (*)  By the duration of useful life regulated by law depending on the purchase option of the lessee
        

Finance lease is the extension of medium- or long-term credit via asset leasing under a financial leasing contract between the lessor (the lease company) and the lessee. The lessor purchases asset required by lessee and holds the ownership over the leased asset during the lease term. The lessee uses the leased asset directly for business and/ or manufacture during the lease term, makes payment of lease rentals under the contract. 

Through BSL, customer can lease asset procured/ made in Vietnam or directly imported from overseas, including:

  1. Construction machines
  2. Machine tools/ production lines
  3. Transportation means and equipment (passenger car, truck, etc.)
  4. OA office equipment
  5. Medical equipment
  6. Others (upon the requirement of customer and investigation of BSL, and not prohibited by the law)
  1. Effective utilization of funds: Avoid the large amount of capital outflow in case of purchasing assets, effectively utilize cash, and secure borrowing limit from banks
  2. Flexible and variable lease term: Lease term is negotiable based on the lessee’s financial situation and technology obsolescence risk
  3. Depreciation and expenses control:
  • The expenses related to the leased asset may be leveled off during the lease term, therefore enabling the efficient control of working capital.
  • Depreciation can be accelerated within the lease term;
  • Quick adaptation to technology innovation: By setting shorter lease term, lessee is able to keep track of technological innovation, especially for high-tech machineries and IT equipment
  1. Reduction of troublesome asset administration work: asset purchasing (or even importing), regular maintenance of the asset. By outsourcing these jobs to leasing company, lessee can reduce the workload on them, and even the labor force
  2. Lease up to 100% of asset’s value and basically, collateral is unnecessary

Customer has freedom in choosing asset upon their needs. BSL will consult quality and supplier of such required asset in case customer need.

Customer can change the place to use the asset, however, it is necessary to inform us in advance by writing and get the written consent from our company.

Please contact our salesman or hotline mail/ telephone and related insurance company in case there arise accidents to the leased asset which needs the handling of insurance company.

Please prepare the below information for shorter and smoother handling:
1. Lease contract number
2. Name, type of leased asset having accident
3. Accident arising date/ time and place
4. Cause of accident/ expected loss/ damage to the leased asset

In case there arise defects or troubles to the leased asset, please contact the supplier where the asset was purchase for repair. Should you do not know contact information of such supplier, please do not hesitate to contact our salesman or hotline mail/ telephone. In case the leased asset encounters troubles or defects which lead to the malfunction or irrepairability of the asset, besides the notification to the supplier, customer should inform BSL immediately. 

Please contact our salesman or hotline mail/ telephone and related insurance company in case there arise accidents to the leased asset which needs the handling of insurance company.

Please prepare the below information for shorter and smoother handling:
1. Lease contract number
2. Name, type of leased asset having accident
3. Accident arising date/ time and place
4. Cause of accident/ expected loss/ damage to the leased asset

In principle, the lease contract is irrevocable. However, in some inevitable situations and depending on the terms and condistions of the lease contract between BSL and lessee, lessee can make early termination of the lease contract with condition that they have to pay all remaining outstanding and/ or early termination fees an return the leased asset to BSL

It depends on the terms and conditions agreed in the lease contract between lessor and lessee, but basically there are 3 cases:

  1. Lessee purchases the leased asset with the amount agreed by both sides and both sides end the lease contract.
  2. Lessee continues to lease the leased asset with value/ terms agreed by both sides
  3. Lessee returns the leased asset to the BSL and both sides end the lease contract.

BSL and customer will discuss depending on the useful life of the asset and the financial condition of the lessee. Usually from 13 months to 72 months

Lease application procedure usually takes 3 days to 10days after the day we received the required documents from Lessee. Time to get approval depends on the application documents, Lessee’s credit history, financing amount and cooperation from Lessee.

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Depending on the lease term and the market interest condition, BSL and customer can negotiate the appropriate interest and the method of interest calculation (floating or fixed). 

Down payment is a part of amount of the asset's value which customer pays before the lease contract. There are normally 2 ways of making down payment, subject to the terms and conditions in the lease contract:

1. Pay to the supplier this down payment; or

2. Pay to the lease company. After that, the lease company will pay the asset's purchase price to the supplier."

Depending on the type of the asset, BSL will decide the ratio of down payment. It may be from 0% of the asset's value.

Up to 100% of the asset's value depending on the type of asset and creditworthiness of the customer.

Secuirty deposit is the amount of money which customer pays to the lease company as the security for their performance of their obligations regulated in the finance lease contract. This amount shall not accrue interest and will be refunded to the customer after both sides fulfil their rights and obligations under the lease contract and end such contract.

Purchase option price is the nominal price which is much lower than the actual price of the asset to be paid by the customer to BSL at the time of expiry of the lease contract in case customer chose to purchase such leased asset after the expiry of the lease contract. In this case, after customer makes this payment to BSL, BSL will issue red invoice to transfer the ownership right of the asset to customer.

Yes. Customer can record finance lease interest and leased asset depreciation as the deductible operating expenses of their compnay as regulated by law.

Large and SME who are legal entity as regulated by the law

Yes. VAT of finance lease rent is deductible as regulated by law.

This depends on the terms of the finance lease contract with the lessor.

  1. In case lessee commits to purchase the leased asset after the expiry of the lease contract: lessee will depreciate the leased asset as the same as that of asset purchased by themselves, with the duration regulated by law.
  2. In case lessee commits not to purchase the leased asset after the expiry of the lease contract: lessee can depreciate the leased asset within the lease term.
  3. In case lessee is unsure whether they will purchase or not the leased asset after the expiry of the lease contract: lessee can depreciate the leased asset with the shorter duration between the lease term and its useful life."

Large and SME who are legal entity as regulated by the law