Identifying long-term investment to expand production volumes, acquire modern equipment and introduce cutting-edge technologies is a significant challenge for many Russian businesses. Given an underdeveloped banking system and limited access to credit, leasing is one of the most broadly available and effective tools for financing corporate growth.

Finance leasing is simple. The leasing company purchases equipment from a supplier of your choice and transfers it to you for long-term use, for which it charges a fee. Throughout the life of the lease agreement, you make regular payments. Following successful completion of the lease agreement, you receive unencumbered title to the asset involved.

Leasing is a unique financial instrument that combines features of standard rent and credit, while offering the following advantages that are available solely through leasing:

• Leasing is a legal way to reduce your tax base:
• Lease payments are fully tax deductible, thereby reducing profit tax.
• Accelerated asset depreciation, can reduce property taxes by a factor of up to three.
• At the end of the lease term and due to accelerated depreciation, you receive title to an asset that is usually fully amortized and, therefore, not subject to further property tax payments.
• VAT payments included in the lease agreement can be fully offset.
• In contrast to a bank loan, no additional security is required for a lease transaction.
• Lengthy lease terms allow for smaller payments and facilitate rational asset management.