Leasing Monitor

An average term of a Leasing Agreement on the Polish market is 36 months. There are constant changes on the market throughout that period. We have changes of law, interest rates, price policies of leasing companies, business operating costs, and financial standing of entities taking advantage of such agreements. As a result we need to verify if the agreements are performed properly both by Beneficiaries and Lessors. Parties to agreements should monitor if the other partner if fulfilling their liabilities correctly. Unfortunately, Beneficiaries’ knowledge and experience are frequently an obstacle to effective verification of Lessor’s obligations. Has the leasing payment been calculated correctly? Has the means of transport tax or property tax been calculated per its due rate? This is one of many reasons why we have launched a leasing agreement administration service, known on the market as LEASING MONITOR.

The service is intended for all entities that are using leasing as a form of financing and those having active Leasing Agreements. It will bring particular benefits to Beneficiaries with larger bundles of leasing agreements (30 agreements plus) or an agreement with a high initial value of leased assets. LEASING MONITOR is a set of actions undertaken upon Beneficiaries’ request in order to provide full protection of their interests throughout performance of leasing agreements, which will result in decreasing costs of serviced agreements and operating and financial risks associated with leasing agreements.

As part of LEASING MONITOR, MGW will take over the following tasks:

1. Review if the leasing payments, including additional fees, are charged correctly by leasing companies
2. Review if leasing agreements that were terminated early have been settled correctly by leasing companies
3. Review financial and legal terms and conditions included in annexes to leasing agreements (e.g. extending or shortening the term of agreement)
4. Review with the Lessor the amount of additional fees charged by leasing companies throughout the term of agreement
5. Represent Beneficiaries before leasing companies with regard to all issues connected with performance of leasing agreements
6. Book booking document issued by leasing companies in accordance with the chart of accounts approved by the Beneficiary, taking into account full analytics of bookkeeping accounts and making them available electronically so that they might be exported to Beneficiary’s accounting system
7. Provide a broad range of reports related to leasing agreements service, including:
   1. Reports on active leasing agreements, taking into account the remaining capital amount in individual agreements
   2. Reports on leased assets
   3. A liquidity report taking into account payments to be made in future periods
8. An electronic archiving system of leasing records and accounting documents issued for individual agreements
9. An online access to the application providing the Beneficiary with a broad range of data about active leasing agreements, an electronic archive of invoices and leasing records and reports
10. To support Beneficiaries when executing new leasing agreements, and in particular reviewing drafts of leasing agreements and GT&CLA and the market nature of presented leasing offer
11. To inform Beneficiaries on an ongoing basis about any amendments to legal acts pertaining to leasing agreements

Consequently, Clients may gain measurable benefits:

1. Protection against introducing negative or unclear provisions into leasing agreements
2. Ensuring that the leasing costs are as low as can possibly be found in particular market conditions
3. Being aware of the level of risk arising from provisions of agreement and a possibility of protecting against it
4. A possibility of getting back undue payments
5. Optimization of cost of leasing agreement servicing, including a possible early termination thereof
6. Protection against a risk of purchasing additional services related to leasing agreements (such as insurance) without being aware of it
7. Professionalization of contacts with leasing companies
8. Constant access to leasing specialists
9. Systematic development of competence of Client’s financial team

MGW is administering over 5,000 leasing agreements every day. Our Clients include representatives of diverse sectors, with sets of 20 to as many as 1,500 leasing agreements

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