‘Leasing’ is defined as a type of ‘long-term renting’. However, this definition is not all-encompassing, in that leasing often exhibits characteristics more common to finance than to renting.

For your benefit, KBC Lease Belgium has provided a word of explanation about the following commonly used terms: 

• financial leasing:
  This is a form of finance where the client may capitalise and depreciate the object in his balance sheet. At the end of the contract, he can exercise a purchase option, the value of which is no more than 15% of the purchase price.
• operational leasing:
  In this case, the residual value is always more than 15% and the object is not depreciated in the client’s balance sheet. However, the client can charge the lease payments directly to his income statement. KBC Lease Belgium offers this product under the name, renting 15+. A purchase option can be arranged for this product, too.
• operational renting:
  This service is better known as full-service car leasing. In addition to vehicle finance, it covers a number of other services such as insurance, vehicle servicing, fuel management, tyres, replacement cars, etc. This product is provided by an affiliated company, KBC Autolease.