Briefly about the main terms and Leasing

At present, the number of enterprises is a serious problem finding and attracting long-term investments to expand production, the acquisition of modern equipment and new technologies. Compared with the banking system, which is in crisis, leasing is one of the most affordable and effective ways to finance business development.

Leasing - an investment tool that allows you, at a time without disturbing the large amount of own funds, to modernize the company and the replacement of fixed assets, to expand production by acquiring a new, modern equipment and high-tech equipment. Leasing - an alternative to bank loans. When using a long-term lease you get debt capital, keeping open existing bank lines of credit, and optimize your company's tax base, using a rational profit.

The principle of leasing is quite simple - the leasing company acquires property from a specific seller you and sends it to you for use for a long time for a fee. During the term of the contract you pay the cost of the property and leased enters your property.

Leasing allows you the means of production here and now, and pay them in installments and with considerable tax savings. In addition, property acquired for leasing under otherwise equal circumstances, is able to independently cover all lease payments and generate substantial profits to the enterprise in the first period of operation. All successful companies regularly use the lease

According to the Law of Ukraine "On Financial Leasing" "Leasing - a set of civil and legal relations that arise from financial leasing contract."

The leasing contract - a contract under which the lessor undertakes to acquire ownership of the leased asset from the seller in accordance with the specifications of the lessee and give it to the lessee for a term not less than one year for a fee (lease payments).

The leased asset - non-consumable thing, the legislation referred to fixed assets.

Financial leasing - similar to the acquisition of hire purchase or loan, but is fundamentally different from her legally, the reflection in the accounting and tax accounting. Unlike credit, leasing is much simpler, faster and more economical.

Financial leasing services include insurance, cost of capital, the costs associated with registration of the leased asset and the payment of all required payments during the lease term.

By signing a contract with the leasing company client receives a comprehensive product that gives the opportunity to purchase an expensive fixed asset with minimal initial costs

The general scheme of leasing transactions is quite simple. The leasing company (lessor) buys the necessary vehicle or equipment involved in its registration and insurance, and passes it to his client. The customer pays only a small fraction of the cost of the leased asset. The rest is divided into equal monthly payments over the long term from one to several years. At the end of the lease agreement for the client is the first right to purchase the leased asset at its residual value

Compared with other ways of acquiring vehicles, machinery and equipment leasing for businesses has several advantages:

Save your time and working capital;
Saving the investment potential and existing credit lines;
Reduces the size of the tax base for income tax by referring to the gross lease payment costs;
Increase the tax credit. Upon transfer of assets under financial lease the lessee of commercial vehicles refers to a tax credit of VAT on the value of the leased asset;
Simple and cost-effective scheme of cooperation: no loans, liens, notary registration;
Leased assets is sufficient to ensure the transaction. The conclusion of the lease agreement is much easier than getting a bank loan. With mortgage loans often exceeds the amount of the loan in two or more times;
Your support in the business. The leasing company Eska Capital helps in finding a supplier in the selection of the optimal variant, as well as undertake the execution of all necessary documents for registering a vehicle in government, pays all required taxes and fees, insurance holds the leased asset, and administers all repairs and insurance claims;
Convenient payment plan tailored to your business;
Terms of lease terms equal to the return of the leased asset. Payment of lease transaction occurs gradually, and from funds received as a result of the vehicle;
At the end of the lease you can buy a car in their property, be exchanged for a new or return it to the lessor.