What determines whether a contract includes an initial payment or not?

What is the basis for deciding whether a guarantee is needed?

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  Every company that chooses Ayvens' services undergoes a credit risk analysis, during which we examine the company's financial results, ownership background and the stability of the industry. The reason of the process is that the company operates as a bank, and operational lease requires a financial commitment that must be grounded.
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  The outcome of the risk assessment determines whether we can contract with the company with or without guarantees.

What types of guarantees are there?

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  Initial payment: an upfront fee that reduces the monthly rental cost. It can be requested regardless of the risk assessment result.
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  Deposit: a sum paid at the time of signing the contract, which is refundable at the end of the lease term.
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  Parent company guarantee: available for corporate groups.

Who should consider the initial payment option, and what are its advantages?

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  Choosing an initial payment option allows businesses to secure lower monthly fees by utilizing some available funds. Additionally, 50% of the VAT on the initial payment is reclaimable. This is an excellent opportunity for companies that wish to replace their owned used vehicles with a new operational leasing structure.
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  However, the initial payment is not mandatory (depending on the outcome of the risk assessment), allowing businesses to invest their financial resources in developing their own operations.

What is the typical amount of the initial payment?

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  In most cases, the initial payment is 20% of the net financing value. However, businesses may choose to pay a higher amount, which will further reduce the monthly fee.

How is an initial payment different from a deposit?

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  The initial payment is essentially the “0th monthly fee,” a larger upfront amount that is not refundable at the end of the lease term but proportionally reduces subsequent monthly fees.
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  In contrast, a deposit has no effect on monthly fees and is fully refundable at the end of the lease term.