It's about efficiency and adequate cash cycles
Leasing allows you to meet your goal of growing tomorrow without overstretching your cash position today – regardless of whether your growth hinges on a new factory, machinery, vehicles, information technology or medical equipment.
Finance leasing is an important source of medium and long-term financing, where it plays an effective economic role by supporting the development of the productive asset base of tenants in general, which increases the ability of local economic enterprises to compete globally and keep pace with development.
Financial Leasing is a means of financing under a contractual agreement between the lessor and the lessee. One of them grants the right to use the asset owned by the other party against periodic installments for a specified period of time and the ownership of the leased property at the end of the contract period is transferred to the lessee automatically or for an agreed amount with the possibility of purchasing the asset leased during the contract period.
In the finance lease, the leased company purchases the asset or equipment required to be purchased and registered in its name, and then transfers its possession to the lessee who uses it against specific payments. Thus, the financial lease enables the enterprises to acquire the necessary assets for their activity without the need to invest a large amount of capital. Regarding the ownership of the lessee’s leased asset, there is less need for a large volume of collateral, as is the case with bank financing.
The existence of a clear and effective legal framework that would regulate the relationship between the parties of financial leasing is one of the most important advantages of this type of financing.