Deferred Payment Trading
(Installment Purchase)


With this form of financing, BOT Lease purchases machinery and equipment selected by the customer instead of the customer making the purchase. The customer pays BOT Lease for the purchase in installments over a long period. While repayment is being made, BOT Lease retains ownership of the purchased assets.

Scheme Diagram

Deferred Payment Trading


1. Support for acquisition of machinery and equipment for long term use

Since ownership is transferred to the customer when equipment/machinery has been paid in full, it is not necessary to return the asset(s), which is different from a lease. After ownership is transferred, the customer can relocate, remodel, improve, sublease the machinery/equipment or otherwise do as they choose with it.

2. Financing Support

Businesses have flexibility in financing since they are able to retain their borrowing facility from financial institutions since this form of leasing has the same effect as long term fixed financing.

3. Equipment Investment Planning Support

BOT Lease can flexibly arrange the repayment schedule in accordance with the customer’s investment budget and investment periods.

Targeted Assets

Manufacturing/processing equipment, production machinery, civil engineering/construction machinery, transport equipment, commercial equipment, medical equipment, inspection and measurement systems, environment/energy equipment, etc.

Main differences between Leases and Installment Purchases

Lease Installment Purchase
Contract Lease Contract Trade Contract
Ownership BOT Lease Customer(after ownership is released)
Asset Capitalization/Depreciation Dependent on the content of the contract Customer
Responsibility for Fixed Asset Tax Payment BOT Lease Customer
Action at time of contract termination Asset is returned to BOT Lease Return of the asset is not required

Asset Ownership

BOT Lease (seller) retains ownership during the repayment period. Ownership is transferred to the customer (buyer) after all payments have been made.

Contact Information

Business Strategy Division
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