• Who may be a lessee?

All companies entitled to transact legally, including joint stock companies, limited liability companies, real person entities, all partnerships, self employed persons and trading entities qualify for being a lessee.

• What may be leased? What is the applied VAT rate? What is the minimum period for transfer of ownership?

Asset Type VAT Rate Transfer of Ownership Machinery and Equipment 18% 4 years Other Construction Machinery 18% 4 years Beko Loaders ve Excavators 8% 2 years Printing Machinery 18% 4 years Industrial Type Knitting and Sewing Machinery 8% 4 years Other Textile Machinery 18% 4 years Photography Printing Machinery 18% 2 years Agricultural Machinery 8% 2 years Plastic Injection Machinery 18% 4 years Packaging Machinery 18% 4 years Motor vehicles (below 1.600 cc) 18% 2 years Commercial vehicles 18% 2 years Trailer 18% 2 years Climating, Sound and Projecting Equipment 18% 4 years Real Estate 18% 4 years Metal Processing Lathes 8% 4 years Other Metal Processing Machinery 18% 4 years

• How to determine rental payments?

The rental payments are tailored according to the lessees sectoral trend of cash flows and feasibility of of investment.

• May the ownership to the equipment be transfered at the end of the 24 month rental payments?

The lease term is defined as 4 years in the leasing law, with exceptions depending on equipment type.   (Ownership Transfer)

• What are the equipment exceptionally allowed for transfer of ownership at the end of 2 years?

• Aviation vehicles, vessels, buses for long distance transport, construction machinery, agricultural machinery, photography printing machinery, medical equipment, computers, printers anf photocopiers. • Motor vehicles leased by tourism and marketing compianies or driving education centers • Motor vehicles leased by cargo companies or companies allocating such vehicles to their distribution and marketing channels, • Motocycles leased to touristic rental companies • Trucks heavier than 3500 kg (Ownership Transfer)

• Is insurance mandatory for leased equipment?

The leased equiment must be insured for all risks throughout the lease term, while the lessee bears the responsiblity for insurance perimium payments.

• The leased equipment has been damaged, what are the steps to be taken?

Get in contact with the insurance company to register for a damage file..

• May investments with incentives be financed through leasing?

Investments with incentives may be financed through leasing. The machinery to be leased mentioned on the global list is transferred to the leasing company, and all exemptions and advantages relating to the incentive may be utilized..

• What types of collateral is accepted for leasing trasactions?

• Shareholders sureties, • Third party sureties, • Promissory notes, • Letters of guarantee or bank guarantorship, • Marketable security pledge or deposit blockage, • Real estate mortgages, • Real customer post dated cheques, • Other (deposits, downpayments, buyback agreement, etc.)

• How is the leasing cycle?

Companies deciding for investment obtain a preliminary leasing offer based on the value of investment. Should the offer be accepted, leasing application form and necessary documents are submitted to the leasing company. The leasing company performs a credit assessment and determines the conditions of credit extention. Upon reaching an agreement on terms of collateral and rental plan with the lessee, a leasing contact is formed and signed by the parties at a public notary. The purchasing process starts with the payment of downpayment by the lessee. The equipment are delivered to the lessee, and a final payment plan including due dates and amounts of rentals is sent to the lessee based on actual costs of equipments.

• May costs other than the purchase price of the equipment be financed?

All expenses including importation expenses (bank, customs, transportation, licencing charges), incentive expenses, notary fees and insurance premiums may be either prepaid by the lessee or financed throughout the lease term.