The Recapital procedure is aimed at capitalizing enterprises at the lowest cost possible through as original as it’s simple.

It provides two different but contextual operations:

1) on one side the enterprise is granted a loan, usually under shape of a leasing or long term rent;

2) on the other the enterprise associates receive an allocation under different shapes and anyway always non-reimbursable.

Concerning the first operation we precise the following:

- the object of the finance (leasing or rent) has to be movables and/or high added value plants useful to the activity of the enterprise;

- the goods can either be provided by a previous investment plan or not;

- except particular requirements, the maturity of the finance must be the minimum provided by fiscal law (between 24 to 60 months);

- the finance interest rate must be the market minimum;

- normally, the finance is reimbursed through periodical (monthly, two-monthly, or three monthly) leasing instalments or rent with constant value;

- the time the carrying out of the operation is expected to take is a few weeks, unless it concerns goods requiring longer supply times;

The second operation (associates allocation) can be carried out under different shapes, depending on the specific requirements of the associates and always and anyway non-reimbursable.

The allocation to the associates takes place just after the leasing company o renting company will have settled the invoice concerning the goods object of the financing.

Usually the steps followed to carry out the Recapital procedures are the following:

- the enterprise communicates the amount of the income before taxation from the previous activity and of the one foreseen for the current activity, in order to set the financing amount sustainable to the enterprise;

- the enterprise will receive a hypothesis indicating the amounts;

- if the enterprise agrees the hypothesis, a meeting will be necessary to set the object of the finance to the enterprise and the kind of allocation to the associates;

- during the same meeting or a successive one the contracts concerning both the goods supply to be financed and the kind of allocation will be signed;

- after the supply order emitted by the leasing or rent company, the goods will be delivered and the relative invoice will be emitted towards the leasing or rent company;

- the allocation to the associates will be carried out the day after the settlement of the invoice will.

The Recapital procedure produces important economic and financial benefits.

As it is evident, the benefits rise from the difference between the amount of the allocation to the associates and the effective cost of the finance to the enterprise, as for effective cost we mean the amount of the leasing instalments or rents minus the taxes saved on them.

The financial benefits rise both from the immediate liquidity that goes to the associates through the allocation (while the enterprise will have to reimburse the medium term finance) than also from the difference between the same allocation to the associates and the total expenses of the enterprise relatively to the leasing or rent operation, net from fiscal saving.