Leasing comprehends bank credit, rent and elements of investment. Leasing is basically a long-term financial contract between leaser and lessee . Under a leasing contract, a leaser obtains a good from the seller on conditions of transferring it, together with full ownership right, for temporary use to the lessee .
Leasing basically is a financial contract between three parties.
Participants of the contract:
- Leaser (Leasing company - Bank of Baku),
- The seller of a subject of leasing (Supplier - the owner of property until the contract is signed),
- Lessee (User - the owner of property after fulfillment of contract).
The leasing agreement takes effect after the conclusion of two contracts:
- Leasing contract - between leaser and lessee,
- Contract of sale and purchase - between leaser and the seller of a subject of leasing.
Some advantages of purchasing fixed assets via leasing are:
- Redistribution of funds, since it is not necessary to direct fund to equipment purchasing, supplies instead can be aimed towards marketing, working capital upgrade, fluid debts repayment, etc.
- Duly improvement of equipments, thus constant use of the newest technologies,
- Leasing itself is considered as collateral, so in many cases it is not necessary an additional guarantee,
- Some leasing contracts include additional services that provide extra comfortable conditions for lessees.
- Leasing payments are not subject to VAT,
- Leasing payments may be completely deducted from company’s profit as expenses,
- During the registration of a leasing at Bank of Baku no additional commissions apply,
- The outstanding balance of a leasing can be repaid partially or completely at any time, which in turn it may reduce the interests.
|
|
| |
| |
Additional information:
Please send us your queries related to this service. Approach any branch or office of the Bank or call Information center 145.
|
|
