Administrative Fee – a fee for preparing and concluding the lease agreement.

Amortization – the gradual reduction of a fixed asset’s value (e.g., a vehicle) over time. In a finance lease, amortization is carried out by the Lessee; in an operating lease, by the Lessor.

Assignment – the transfer of rights and obligations under a leasing agreement to another entity, subject to the Lessor’s approval.

BIK (Credit Information Bureau) – an institution that collects clients’ credit history. The Lessor may check BIK to assess a client’s creditworthiness.

Buyout – the process where the Lessee becomes the asset’s owner after paying the residual value at the end of the lease.

End of Contract – the final stage of the lease agreement. It may conclude with the asset’s return to the Lessor or its buyout by the Lessee.

Finance lease – the asset becomes the Lessee’s property after the contract ends; the Lessee amortizes the asset and deducts the interest portion of the installments.

GAP Invioce – guarantees a benefit equal to the invoice value of a lost or destroyed vehicle (passenger car or semi-truck with trailer). In the event of total loss or theft of a leased vehicle, you receive the difference between the vehicle’s invoice value and the insurance payout from the AC or third-party policy.

GAP Index30 – guarantees an additional payment in case of total loss or theft of the leased vehicle (passenger car or semi-truck with trailer), amounting to 30% of the insurer’s AC or third-party payout.

KRD (National Debt Register) – a database containing information about the debts of individuals and companies; used by Lessors to assess credit risk.

Late Payments – when the Lessee does not pay installments on time, it may result in additional fees or contract termination.

Lease (Dzierżawa) – a contract in which the owner gives an object for use to another entity in exchange for rent.

Lease Installment – a periodic payment by the Lessee for use of the leased asset, including principal and interest.

Leased Asset – the item covered by the lease agreement, such as a car, machine, or medical device.

Leasing – a financing method where the Lessor provides the asset to the Lessee for use over an agreed period and at agreed payments.

Leasing Loan – a financing method where the client receives funds to purchase a fixed asset and becomes its owner; repayment is made in installments.

Lessee – the party in a leasing agreement that uses the leased asset and commits to paying installments.

Lesseeholder – another term for Lessee.

Lessor – the leasing company that finances and provides the asset to the Lessee.

Operating lease – the asset may be purchased by the Lessee at the end of the lease for a pre-agreed residual value; the Lessor amortizes the asset, and the Lessee deducts the full lease payment as an expense.

Pro forma invoice – an informational document that is neither an accounting record nor a payment obligation.

Repayment Schedule – a plan detailing payment dates and amounts of leasing installments.

Residual Value – the agreed purchase price for the asset at the end of the lease term. Often expressed as a percentage of the initial asset value (e.g., 10%) and affects monthly installment size — the higher the residual value, the lower the monthly payments.

Sale and leaseback – a transaction where the owner sells their asset to a leasing company and simultaneously leases it back, improving liquidity.