How to lease equipment

Any company planning to expand its production capacity can profitably solve the financial issues of acquiring fixed assets using such a type of lending as leasing. In leasing, you can take commercial or industrial premises, transport, special equipment, industrial equipment. You can issue leasing through a bank or leasing company.

Instruction manual

1

View information about types of leasing, information about leasing companies in your city, and about banks that provide such services. Contact the managers of several banks or companies of your choice. Find out about the possibilities of leasing the equipment you need, specify the necessary conditions and the list of documents that you need to submit to conclude the transaction. Typically, a package of documents includes:

- copies of constituent documents, state registration certificates;

- A copy of the entrepreneur’s passport, a certificate of the tax code (if it is an individual);

- extract from the State Register of legal entities and individuals-entrepreneurs;

- quarterly reports (income statements) for 5 reporting periods;

- a certificate from the bank on the movement of funds in all bank accounts over the past 12 months and information on credit debt (not all companies require it).

2

Consider the options for the conditions for providing equipment for leasing that have been proposed to you, select the most attractive option. Prepare copies of the required documents. Fill out and submit an application, the form of which will be given to you in the selected leasing company. Attach the required documents to the application. The application is usually reviewed by the company within 10 business days.

After considering the application and making a positive decision, the leasing company will offer to conclude a leasing agreement. Before signing it, show the contract to an experienced lawyer who will draw your attention to possible "pitfalls" in the contract. If you are satisfied with all the terms of the transaction specified in the contract, sign the document.

3

Make the advance payment stipulated by the contract to the account of the lessor. Advance payment may amount to 10-30% of the contract value. You may need to pay for property risk insurance. After providing the leasing company with a signed leasing agreement, copies of payment orders on the transfer of the advance payment and insurance payment, you will be delivered the necessary equipment.

note

Operational leasing - rental, at the end of which the property is usually returned to the lessor.

Financial leasing - a lease with the right to buy property at residual value after all leasing payments have been paid.

Reverse leasing - involves the acquisition by the lessor of property from the owner and the transfer of this property to him on lease.

By agreement with the Lessor, the leased asset may be purchased by you ahead of schedule at the residual book value on the date of purchase. At the same time, the lease agreement is terminated, and the parties make an appropriate allocation.

All leasing payments (including the cost of insurance, commissioning) are fully attributable to the cost of products or services, which significantly reduces the tax base for income tax.

The VAT allocated in leasing payments is set off when paying to the budget the full amount of leasing payments.

Leasing makes it possible to use accelerated depreciation of property with a maximum ratio of 3. This allows you to increase depreciation.

You can attract partners for the use of equipment leased for the period of downtime, since leasing does not set limits on the number of possible equipment owners.

Useful advice

Before deciding to purchase equipment on lease, study the legal framework for leasing, draw up a business plan for the use of the equipment you want to lease, calculate the economic efficiency of your idea, the financial capabilities of your company.

lease equipment