Like credit, it is a special financial instrument that is implemented by banking or other companies and allows legal entities and individuals to purchase the necessary products on preferential terms. This is one of the most effective modern tools for the development of production. With it, the company can save working capital and get the right equipment without withdrawing them. This is a kind of long-term lease, financial relations in which the lessee and the lessor participate. The subject of the transaction may be production equipment, various means of transport, machinery. Especially popular today is leasing equipment for legal entities.

How to use the services of leasing companies?

Unlike lending, when leasing, you can get an excellent opportunity to save on income taxes and property. A company or an individual entrepreneur does not become the full owner of the property until it has paid in full, that is, it will not redeem it. Accordingly, there are no tax payments.

Many financial companies are ready to lease equipment for legal entities on the following conditions:

• Down payment of ten percent of the value of the subject of the transaction.
• The term of the lease is up to five years.
• Interest rate - assigned individually.
• A potential client (legal entity) must be registered in Russia and conduct successful business for at least twelve months.

In rare cases, legal entities are denied leasing. This can happen with newly registered companies without a certain level of income.

Package of documents: what to prepare when going to a leasing company?

Any financial institution that provides equipment for leasing to legal entities makes requirements for a mandatory package of documents. From a potential lessee will be required:

• Registration and constituent documents - certificates, licenses, patents, articles of association.
• Protocols, orders.
• Bank inquiries about existing debts.
• Quarterly reporting documents for the last 24 months.
• The business plan of the project (at the discretion of the lessor).
• Profit and VAT declarations for the last year.

It is necessary to thoroughly prepare for registration, but the privileges received fully justify some of the difficulties of the preparation process. After collecting documents, the client can apply for certain equipment. It is advisable to do this on the territory of a financial institution, and not via the Internet. Approval or rejection will have to wait at least three business days. Typically, applications from individuals are considered more quickly. After the adoption of positive rhenium, the bank enters into a lease of specific equipment for a specified period.

What is the result?

For legal entities - this is a modern service that is especially popular and allows you to purchase industrial, industrial, medical, tire fitting and other types of equipment. It all depends on the profile of the organization. Typically, the leasing limit does not exceed 25 million rubles for the purchase of equipment.

If the application is approved, the legal entity receives the following benefits:

• Significant reduction in cash processing costs. All costs are borne by the lessor, as he is the owner of the property until the expiration of the lease.
• Effective development of the enterprise - often the continued existence of the organization depends on the purchase of new equipment.
• Working capital savings - you do not have to use the company’s cash.
• Savings in the payment of taxes on profits and property.

Repayment and redemption

If the equipment was leased, it can be redeemed when the lease expires. To repay the debt, payments can be made monthly or quarterly, but in strict accordance with the agreement. You need to be careful about the payment and make certain amounts on time. In case of one or two delays, the equipment may be withdrawn from the lessee.

Full or partial early repayment with payment of cash for property is provided. In the event of full repayment, the equipment prematurely becomes the property of a legal entity. From the point of view of overpayment, it is better to quickly buy the necessary equipment. But long-term lease is also profitable due to accelerated depreciation and minimal tax payments. Partial early repayment of the debt by small payments is possible, as a result of which the total amount of payments is reduced.

The average financing time for leasing is from two to five years. But when you purchase equipment worth more than ten million rubles, the period may increase to ten to twelve years at the discretion of the lessor. From a legal point of view, leasing is a rather time-consuming procedure, but still, organizations prefer to use the services of leasing companies to purchase expensive and necessary equipment.

Equipment leasing for small businesses - the ability to use equipment or machinery with the right to buy it in the future. The entrepreneur chooses the equipment he needs, and the lessor pays from 70 to 90% of the cost. The entrepreneur pays the missing amount from his funds and receives equipment for long-term rent.

Gradually, he redeems this property and it becomes his property. If the acquisition is not included in the plans, after the expiration of the leasing agreement, the equipment will have to be returned to the leasing company.

Leasing is an optimal financial mechanism that differs from a loan or lease agreement.

At first, the novice entrepreneur did not have enough funds to buy equipment. Using leasing allows you to use high-tech funds at a low price (monthly payments in accordance with the contract), and direct the free funds to development.

Characteristics of this form:

• third party (supplier) participation;
• the impossibility of terminating the contract during the term of the main lease (early termination is sometimes possible, but the leasing operation will become more expensive);
• long period of agreement;
• high cost of the transaction.

Operational leasing

In Russia, this form is practically absent. After the contract expires, the equipment is returned to the leasing company. This form of leasing is used for equipment with high aging rates. The term of the contract is from 2 to 5 years.

Operating leasing is chosen if:

• the estimated income received from working with the equipment will not pay back its initial cost;
• equipment is used for a short time (during seasonal work);
• equipment requires maintenance;
• new, not yet tested equipment.

Directions of leasing

Directions are different, leasing companies distinguish:

• commercial real estate;
• equipment;
• special equipment;
• freight transport;
• buses
• passenger transport.

Medical equipment leasing

Calculation of equipment leasing

Choosing between credit and leasing, entrepreneurs compare the amount of lease payments and the amount of the loan, taking into account interest.

A reduction in tax deductions is not taken into account, although it is an advantage and reduces the cost of servicing a leasing transaction.

A calculator can reliably assess the appropriateness of using leasing. With its help, several options are calculated and the most suitable one is selected. It is required to enter data in the form:

• currency;
• type of payment (annuity or differentiated);
• cost of equipment;
• amount of redemption payment;
• down payment amount;
• contract conclusion period.

Using leasing equipment for small businesses, an entrepreneur can start a business without start-up capital. The equipment taken in leasing works immediately after the conclusion of the contract, it makes a profit and reaches self-sufficiency.

Leasing equipment for small businesses - how to conclude an agreement on favorable terms, you can find in the following video:

In this article, we will consider what leasing is, who needs it, what is the advantage of acquiring equipment on credit, how to get it, how to choose a company and other important issues that a person who decides to modernize or update the production process faces.

One of the main issues in organizing and developing a business is the choice of a financial instrument that will allow modernizing production or updating production capacities with minimal financial investments. Often there is no way to buy the necessary equipment for cash or on credit (and this does not make sense), so many entrepreneurs resort to the services of companies offering equipment on lease.

What is the advantage of leasing?

This is a convenient financial tool for obtaining industrial lines in debt. An agreement is drawn up and signed between the lessee and the lessor, under which the second participant provides the first with the necessary property under long-term lease conditions.

The advantages of such an operation are undeniable. Firstly, the teacher does not need to look for valuable property for collateral. Secondly, they are put forward on such stringent conditions as in the case of obtaining a loan from a bank. Thirdly, the property does not belong to the enterprise, which saves on taxes. In addition, the company receives the necessary equipment as soon as possible. It can be assumed that it will quickly pay off and begin to bring stable profits.

When the agreement expires, the entrepreneur decides whether to buy him this equipment or not. When an entrepreneur takes it on lease, he automatically gets rid of the risk of buying low-quality goods and other frauds.

Terms of Service

This transaction is somewhat reminiscent of a loan. Typically, the lessor requires the lessee to pay a certain amount (the amount reaches 30% of the total cost of the equipment). Also, during the execution of the contract, the interest rate, which is called the rate of appreciation, is determined. Often, the rate is several points higher than established by banks for large business loans, but this should not stop. The validity of contracts is no more than 5 years, during which time the lessee overpays for the rental of property about 2/3 of its initial value.

How to get the equipment?

Consider the stages of the transaction.

1. The preparatory phase, in which:

- a potential lessee draws up an application to the leasing company about the intention to purchase this or that equipment;

- specialists of the structure analyze financial documentation.

2. Legal execution of the transaction, namely:

- Signing a leasing agreement between the company providing the equipment and the lessee;

- The initial payment by the recipient of the approved payment;

- execution and signing of the contract of sale between the leasing company and the supplier;

- execution and signing of an insurance contract for the transaction between the insurer and the lessee;

- registration of acquired equipment in state bodies (if necessary);

- signing of all documents and transfer of the transaction object to the recipient.

3. Operation of technological devices, timely repayment of payments, the amount of which is agreed in the contract.

4. Transfer of the leased asset to the lessee (occurs after payment of all payments specified in the contract).

How to find a quality company?

The search for a suitable leasing company is carried out in the following ways:

1. The first way is to search for an organization specializing in a certain type of goods (carrying out such transactions for two or more customers), but this is not always simple and effective, as there may be a situation where for such a company such transactions were exceptions to practice.

1. The second way is to search for a flexible universal company that has extensive experience working with a wide range of equipment that will prepare information on its versatility, liquidity, etc.

To understand whether the company will cope with the project you have prepared, evaluate its ability to secure financing. The main points are the size of the portfolio and the company's affiliation with the financial group. If the project size is close to 1% of the portfolio of the company and it positions itself as independent, there is a high probability that before you raise the necessary funds, you will go through a lot of banks with it. If you find a leasing company, discuss whether it will be able to finance the project, and how it will do it.

If you want to purchase equipment from a foreign company, it is worthwhile to clarify how many international deliveries were made by this company, how work is underway on import contracts, because otherwise there is a chance of not meeting a certain budget.

Consider, each case is individual. The key sign of determining the parameters and the scheme of a particular contract is the peculiarity of the situation of a lessee.

Leasing of industrial equipment is becoming more widespread in our country. Even though the essence of the whole operation comes down to a financial lease. That is, until the equipment is completely redeemed from the leasing company, it will belong to it.

Definition

What is called leasing? This is a certain community of economic, as well as legal relations, where the selected object is transferred to a long-term financial lease with a possible redemption or return to the lessor.

In other words, the company can lease the necessary equipment and use it.  Moreover, the organization will receive the right of ownership only when it fully redeems the property.

The contract is concluded with the presence of several parties. This is mainly the buyer, end user, insurance company and supplier.

The buyer is any leasing company or bank purchasing equipment for its own funds, which will be subsequently operated by the end user in accordance with the agreement.

The end user is an enterprise that enters into a leasing agreement with a bank or leasing company for a financial lease of a particular equipment for a fee. Ultimately, he can either buy back the equipment or return it to the buyer.

The supplier is the company that supplies the ordered equipment to the buyer on the basis of the contract of sale.

The insurance company, in turn, provides its services to the parties to the transaction.

Classification

Given the legal aspects of the issue of leasing, it has a large number of types and forms. Consider the main ones that are most often found in the economic market.

Video: Advantages and Disadvantages

Kinds

Leasing of production equipment is currently offered by many leasing companies and financial institutions. Most of them “take” customers with special conditions in the form of good discounts, low interest rates, accelerated depreciation, etc.

But each founder must remember that a leasing agreement can only be concluded if the company has been on the market for at least a year, and its revenue is several times more than payments under the leasing agreement.

By type of equipment

Loko-Bank provides its customers with various types of guarantees for the implementation of agreements, including state and municipal ones. Read the article.

Learn about a bank guarantee from Raiffeisenbank.

What is more profitable

It is quite reasonable if the owners of enterprises have a question: what is more beneficial than credit or leasing of production equipment?

Consider the primary benefit of the second:

• A more simplified process of processing a transaction, including the collection and provision of documents (they are much smaller than when applying for a loan);
• For an enterprise that does not have a credit history, it is almost impossible to get a loan. But for a leasing organization it will be enough to provide a good business project;
• A leasing transaction is the most profitable than a credit one. In this case, the first can be concluded for a longer period;
• When concluding a leasing agreement, the equipment remains on the balance sheet of the leasing company, which eases the tax burden of the lessee. And the loan not only makes the company pay taxes, but also does not make it possible to get additional investment;
• The opportunity to purchase the necessary equipment with state support. This means that a certain percentage of the advance payment for the end user is paid by the state, which significantly reduces initial spending.

Documents

In order to conclude a leasing agreement, it is necessary to collect and present the following package of documents:

•   from a company representative with all fields filled in;
• Copy of the charter of the organization with all changes;
• Copies of documents confirming the registration of the organization with the tax authorities;
• The document on the appointment of the head to the post;
• Passport data of the head of the company;
• Financial statements for the previous reporting period;
• Bank statement for the last year.

All documents must be certified by the signature of the head and seal of the organization.

Lessee Requirements

The basic requirements that all companies must meet include the following:

1. The company must be in the financial market for at least a year;
2. An organization concluding a leasing agreement must be a resident of the Russian Federation;
3. The company must be registered as a legal entity or as an individual entrepreneur;
4. Organizations that lease equipment should be prepared for a cash limit. In other words, the execution of the contract is possible from 10 million rubles;
5. The down payment amount cannot be less than 10% of the total cost.

Advantages and disadvantages

Financial rent, helping to solve the problems of enterprises, has both positive and negative sides.

Advantages of concluding a leasing agreement:

1. Finance leases do not require a full investment of cash assets. For legal organizations, this is a good opportunity to buy expensive equipment to attract cash flow to the company without extra expenses;
2. The presence of simplified rules for obtaining leasing as opposed to a loan. Production equipment acts as a pledge at the conclusion of the contract, so the organization does not need to provide additional collateral;
3. The presence of various forms of collateral reduces the level of risk for the enterprise, while its assets may not be affected;
4. Significant reduction in the tax base when calculating income tax;
5. The resulting equipment is put into operation immediately after purchase and installation.

Characteristic flaws:

1. The only expenditure may be cash payments of the down payment, which are the costs of this period, in the amount of up to 25% of the total;
2. From the point of view of jurisprudence, a leasing transaction is a rather complicated procedure. This applies to the process of paperwork and further payments, especially if the end user wants to pay off the debt to the leasing company ahead of schedule;
3. Monthly lease payments can significantly hit the organization’s pocket, as the equipment itself costs a lot of money;

The head of the organization must weigh the pros and cons before making a lease. And most importantly, determine the financial stability of your company.

A very common situation in the domestic economy is when an enterprise wants to purchase new production equipment for its economic needs, while it does not have enough funds. At the same time, the opportunity to get a loan is complicated if the equipment purchased significantly exceeds the amount of available own funds. In this case, an effective way to solve the problem would be leasing of equipment.

Now many manufacturers of industrial equipment are faced with the problem of insufficient funds from enterprises to purchase it, in connection with which they began to actively offer it on lease. In essence, leasing is a form of long-term equipment rental, in which the lessee has the opportunity to buy this equipment after the lease term specified in the lease agreement.

The acquisition of leasing equipment is, first of all, an operational solution to the problem of expanding and modernizing the production base, increasing labor productivity and improving product quality. Naturally, all these points will ultimately have a positive effect on the financial results of the enterprise - will lead to increased profits and increased profitability.

The option of buying equipment on lease is very attractive for enterprises for several reasons.
Firstly, the cost of purchased equipment is not limited to the amount of assets or own funds of the enterprise, since the equipment itself will act as a pledge and guarantee of repayment for a bank or leasing company. In this case, the foundation of success for the enterprise is the quality of working out a business plan for the use of leasing equipment.
Secondly, equipment acquired through leasing often remains on the balance sheet of the lessor, which does not affect the structure of the assets and liabilities of the recipient's company and does not reduce its creditworthiness. In this case, the company retains the opportunity to attract, say, short-term financing, for its operational needs.

The very procedure for acquiring equipment on lease is implemented in several stages.
  First of all, a potential buyer contacts the equipment supplier and agrees on all commercial terms of the transaction. Then he turns to a leasing company (bank) and provides the necessary package of documents (for equipment, for the enterprise itself, financial and legal documents). A bank or leasing company analyzes the feasibility of financing a specific transaction and, if a positive decision is made, sign a leasing agreement and related agreements, if necessary. Further, the buyer of the equipment makes an advance payment to the lessor’s account (it may amount to 20-30% of the cost of the leased asset), which, in turn, pays the cost of the equipment to the supplier (seller). After this, the equipment is transferred to the lessee, who, in turn, makes lease payments to the bank or the leasing company.