Russia

What is - "leasing"

Leasing - a financial lease of property (leased), as a rule, with the subsequent transfer of the leased asset to the lessee's property. Lessor buys the leased asset and passes it to the use of the lessee, who operates it and pays the lease agreement stipulated payments. Compared with bank credit leasing has some tax benefits, which are provided in the federal law on leasing.

Bank loan can not be considered to be expenses, interests are paid out of profits of enterprises, Subject to the applicable tax. All lease payments are classified it as a cost, freeing the entrepreneur from the income tax. Moreover, the client does not pay the object of leasing the property tax, because until the end of the contract shall be deemed the property of the leasing company.

In recent time, Leasing in Russia grew at an impressive rate, now the volume of transactions in this market in one year is more than $ 30 billion on their volume of the Russian leasing market is ranked 10th in the world. Yet re in many industries, as well as the rapid development of new industries for leasing requires those who finance leases, are more active and promises even greater volume of business. After leasing for small businesses as air. Exhibitions and conferences, there are new players and services. But to civilization we are still far: in Europe, for example, real estate transactions comprise 17% of total leasing in Russia - about 1%.

As the market grows and competition among lessors, and it also stimulates the reduction in their margins and profits. At the same time, economies of scale, increasing by increasing companies, enabling them to work effectively at a low relative income. This, ultimately, is only good as a lessee, and by the leasing companies.

  

    

          

               

             Advantages of leasing

1. Leasing does not involve a one-time attract large amounts of their own funds to purchase the leased asset.

2. A lease agreement is usually for 2-3 years, which is about the payback period of the leased asset. If the equipment is leased with long payback period, the lease agreement may be concluded for 5-6 years. Not all lenders are ready for such terms.

3. Also, if the leased asset is located, on the balance of the leasing company, the lessee has no need of revaluation of fixed assets (in terms of the leased asset).

4. The leased asset can be recorded on the balance sheet or the lessor or the lessee. If the balance holder is a leasing company, the lessee is able to improve the structure of its balance sheet, due to the inclusion of the leased asset at the balance accounts (credit or direct purchase will not allow it to do).

5. The repayment schedule (schedule of lease payments) is flexible. The lessee does not pay to enter the leased asset into operation.

6. Leasing is the only way to apply accelerated depreciation to a factor of 3. Due to this, the carrying value of the assets is reduced to 3 times faster and therefore reduce the amount of property tax.

7. Leasing allows you to save money through tax incentives (income tax, VAT credit, property tax).

8. Upon expiry of the lease agreement, the lessee has the ability to get the leased asset at zero cost.

9. Lease payments are allocated the most convenient way for the lessee and due dates, when the company has already started to make a profit from the use of the leased asset, and it has already paid off.

10. Because of its simplicity, accessibility and effectiveness of leasing allows lessees support fund of production in accordance with the current requirements of the market, which makes it a significant competitive advantage.

11. Obtain financing through leasing, much easier and much less likely to require collateral. Since the leasing company will be the owner of the property before the end of the lease term.

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