Document background
The Financial Lease Contract serves as a crucial financing instrument under Belgian law, enabling businesses to acquire and use essential assets while spreading the cost over time. This document is typically used when a company needs to acquire expensive equipment, vehicles, or other capital assets without an immediate large capital outlay. The agreement, regulated by Belgian financial services law and the Civil Code, provides detailed terms for the financial and operational aspects of the lease, including payment schedules, maintenance obligations, and end-of-lease arrangements. It differs from operating leases in that it typically transfers substantially all risks and rewards of ownership to the lessee, while the lessor retains legal title as security. The contract must comply with specific Belgian regulatory requirements, including those set by the Financial Services and Markets Authority (FSMA) and tax authorities.
