Advantages of leasing:
- During analysis of Client’s solvency we evaluate his business, not the official report indices;
- Lease agreement is flexible: payment schedule is formed taking into consideration specifics of Client’s business;
- Leasing has no restrictions in terms of Client’s territorial location or the form of ownership;
- Leasing does not provide for the mandatory purchase of additional services from the financing bank;
- Leasing allows for the substantial savings of both time and money which otherwise would’ve been spent on the maintenance of loan or installment payment agreements;
- No need to take substantial amount of cash out of circulating capital;
- No need to look for the additional collateral which may be required to procure the loan;
- Subject of leasing cannot be a tax pledge or an object of collection by third parties;
- Equal payments during the entire lease term substantially simplify the process of planning current and future expenses;
- You can make payments of transport duty, insurance and maintenance of subject of leasing in installments and interest-free during the entire lease term.
Specifics of financial leasing:
- Subject of leasing is accounted for at the Lessee’s balance;
- Subject of leasing is transferred into the Lessee’s possession;
- Lessee receives VAT credit for the entire value of the subject of leasing at the time of its receipt;
- Expenses included in the lease payments are not taxable by VAT (costs of financing, registration, insurance, etc.) and are included into the company’s gross expenses.
Specifics of operative leasing:
- Maintenance of enterprise’s credit attractiveness (the balance does not reflect long-term liabilities in connection with leasing);
- All risks related to moral and physical wear of the subject of leasing are borne by the leasing company;
- Leasing company is responsible for the administration, insurance, and maintenance of subjects of leasing, and as a result, there is no need in having additional personnel;
- When making lease payments you accrue tax credit for the amount of VAT included in each lease payment;
- Lease payments are fully included into gross expenses (with the exception of car lease);
- When receiving subjects of leasing into use and returning them you do not accrue any tax liabilities.