Everything About Leasing

Everything About Leasing

A lease is simply an agreement by a Customer (lessee) to pay a valuable asset rental payment for a specific amount of time with a predetermined buy out. More information on leasing options and advantages is presented below.

Financial Lease

A finance lease is mostly used as a method for new equipment purchase with at least three participants (the lessor, the lessee and the seller of the equipment).

The company offers optimal financial leasing terms where contract and lease duration for the asset become equal (reduced to maximum possible ratio).

Finance lease agreement grants the lessee with the ownership rights over the leased asset by the end of the lease term.

Sale-Leaseback

Sale-Leaseback is used when seller of the equipment and the lessee are the same legal entity. The owner sells assets to a leasing company simultaneously entering into a long-term lease for the same assets on a leasing basis.

This format is profitable for companies experiencing a serious lack of working capital, planning business and assets separation, changing management structure and approach, saving on income tax, profit and value added tax.

Sale-leaseback provides significant liquid assets growth of a company, as during fixed assets transfer in operative leasing, non-core business assets become receivables.

The Advantages of Leasing

Reduction of income tax

Reduction of property tax

Cash preserve

No accounts payable

Current assets increase

Cash flow optimization

Financial plan stabilization

Protection of property

Additional cash

Increase in sales

  • 1. Lease payments are fully charged to cost of products (works, services) resulting taxable profit decrease. (Saves up to 18-20% from purchased equipment cost).
  • 2. Property tax amount is reduced due to equipment accelerated depreciation method.
  • 3. Leasing protects the lessee from driving considerable funds from company’s turnover (as opposed to direct purchase).
  • 4. Lessee’ balance sheet structure improvement due to accounts payable absence (as opposed to equipment purchase with a loan). This improves company’s financial performance and allows for additional borrowings.
  • 5. Lessee’ cash flows and company balance assets optimization.
  • 6. Lessee separates business and assets, since the equipment purchased under the lease agreement is owned by leasing company and is protected from creditors’ claims.
  • 7. Leasing is of great interest in terms of marketing activities. Financial leasing provides opportunity for sales promotion by payment method flexibility. The seller, acting as a lessor, is protected from client’s insolvency with the fact that property itself belongs to the seller.
+7 (495) 540-51-32
Sea Basis Leasing Company (JSC)
Grand Setun Plaza, Office B 501. Gorbunova St., 2, Bld. 3, Moscow, 121596, Russia
INN: 7727389992. KPP: 772701001. OGRN: 1187746751081
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