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| Q1. |
What kinds of things can be leased? |
| A1. |
Nearly all kinds of equipment and facilities can be leased, including
telecommunications devices, office equipment, computers, production facilities,
medical equipment, transport devices, etc. |
| Q2. |
How are lease fees calculated? |
| A2. |
Lease fees include the object's value, insurance premiums, fixed
asset taxes, and interest. Calculations are performed with the assumption of equal
payments over the term of the lease. For more information, contact an NTT FINANCE sales representative. |
| Q3. |
How are lease terms decided? |
| A3. |
Lease terms are decided by customer preference and normally range
between two and six years. However, for applying lease terms to taxes, the following
conditions must be met with regard to the object's legal durable service life.
(The foregoing shall not necessarily apply to operating leases. For more information, contact an NTT FINANCE sales representative.)
- Applying lease terms for tax purposes
When the legal durable service life is ten years or less, the lease term is
calculated at (the legal durable service life) X 70% or higher. When the legal
durable service life is ten years or more, the lease term is calculated at (the
legal durable service life) X 60% or higher.
(Periods of less than one year will be disregarded.)
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| Q4. |
Where does ownership of the leased object reside? |
| A4. |
NTT FINANCE would own it, as ownership resides with the leasing
company, from tax filing to completed payment. |
| Q5. |
Who pays the fixed asset tax? |
| A5. |
NTT FINANCE would own it, as ownership resides with the leasing
company, from tax filing to completed payment. |
| Q6. |
Are leased items insured? |
| A6. |
Lease comprehensive insurance is applied to leased items (excluding
software). Insurance coverage and periods are as below.
- Insurance coverage
Premiums are paid to insure the leased items against damages resulting from extraneous unforeseen accidents. In practical terms, insurance covers the following losses.
Insurance would not be paid, however, for losses or damages stemming from earthquakes, eruptions, or losing or misplacing the item.
- Insurance period
The period would begin with the start of the lease of each item and would cover its duration. Re-leased periods, however, are excluded.
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| Q7. |
Who manages the leased item? |
| A7. |
Maintenance and management of the leased item would be performed
by the customer using that item. Although item breakdown or other problems within
coverage can be covered by a certain range of insurance, any additional maintenance
fees would, in principle, be the responsibility of the customer. |
| Q8. |
Can a lease contract be canceled mid-term? |
| A8. |
A FINANCE lease contract cannot be canceled mid-term. However, in cases where a contract must be canceled for unavoidable reasons, the item would be returned, and a specified amount of cancel fee (for abrogating the contract) would be paid. Operating lease contracts can be terminated mid-term in some cases. For more information, contact an NTT FINANCE sales representative.
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| Q9. |
What should customers do when the lease term is up? |
| A9. |
When the lease term has ended, either the customer must pay to
return the item to NTT FINANCE, or the customer can continue to use it (through
re-leasing). Re-lease fees are offered at just 1/10th the yearly cost of the original
lease, with a year's amount due at the beginning of each year of the re-lease
period.
(Separate provisions apply to operating leases.) |
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