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Evsen Group of companies has broadened its activity and created "A-Leasing" Company concerned in financial service. The company has got license of Azerbaijan Ministry of Justice, and was registered on February, 3, 2006. Since stablishment "A-Leasing" got one of the highest customer portfolio in leasing market, which is there about 85000 people. There is a very good indicator for the market as well as reliable and accurate for company policy. Operates on 31 branches in different cities and regions of Azerbaijan. "A-Leasing" provides the following types of leasing:
- Operative leasing
- Financial leasing
- Subleasing
What is leasing? Leasing is one the more developing fields in our country, in order to buy the equipment for the private means and sell it to the enterprise.
What is leasing?
Leasing is a financial service. Developing worldwide and in our country, the leasing is an alternative for purchasing of main assets by own funds or by credit. Leasing stipulates the provision by Leasing Company of main assets (for example, equipment or property) to the entrepreneur for use (rent) for medium or long term. Upon the expiry of the term of leasing agreement, main assets are transferred at the agreed price to this entrepreneur. Use of leasing instead of purchasing allows businessmen to direct freed funds for other purposes for increase of his company’s profitability. Thus, investment by leasing allows to free funds for their use in turnover and liquidates need in short-term loan. Leasing stipulates three-sided agreement between a Lessor (Leasing Company), Lessee (You) and seller of equipment (Supplier). In the leasing deal at least two agreements shall be signed:
- Between Lessor (leasing company) and Lessee (entrepreneur);
- Between Lessor (leasing company) and Supplier (seller of the equipment);
The equipment supplier is usually selected by the lessee. Different from credit and cash purchase, the leasing has a number of advantages:
- Leasing payment is not subject to VAT;
- Leasing finances 100% of investments. Transport, insurance, installation and other costs may be financed by leasing;
- Considering the fact, that leasing equipment is the property of leasing company, A-leasing,different from bank credits, does not require any additional mortgage from its clients;
- Leasing payments are completely included into costs;
- In the conditions of absence of long-term financial sources, you may finance your investment projects for the period of 5 years;
- Obtaining equipment for leasing, you may apply double depreciation rate to the equipment. It will allow you to reduce significanlty your tax payments;
- In leasing all payments are calculated in accordance with your cash-flow, and this will allow you, almost unnoticeably, cover your long-term debts;
- Leasing investments are self-financed. Thus, leasing payment will be made from the profits of the investments;
Types of leasing
Usually enterprises are the owners of their main assets and these assets are reflected on their balance. It is not always the best option for enterprises. With occurrence of leasing, along with purchasing of main assets, enterprises also obtain the possibility of their rent. In leasing relations, costs, associated with the ownership of property are related to leasing. Sometimes enterprise sells its equipment to a leasing company and obtain it back again via financial leasing. This type of leasing is called return leasing. There are such types of leasing as: Operational Leasing, Financial Leasing and Subleasing.
Operational Leasing
This type of leasing differs from financial leasing with shorter period and higher rate of leasing payments. In operational leasing, Leasing company is responsible for all costs for current or capital maintenance of the equipment and these costs are included into the leasing payments. Upon the expiry of the term of operational leasing, equipment remains the property of Leasing Company. Therefore the operational leasing term is usually small, and amount of leasing payments does not cover the entire price of the equipment. Leasing company during operational leasing covers the price of equipment by its re-leasing or its sale. Operational leasing is usually used by companies for obtaining of high-tech equipment. In this case, even if the equipment is in good condition at the end of the leasing period, it is morally out-of-date due to the more modern equipment on market. Therefore, the company will need considerable resources for replacement of such equipment. Operational leasing provides solution for such situations.
During the operational leasing the equipment is purchased by Leasing Company In Advance – without consent of lessee, and all risks associated with this purchase remain with the leasing company.
Financial Leasing
Financial leasing is the most common form of leasing. In financial leasing the transfer of equipment stipulates a long-term rent under certain conditions in return of regular payments and transfer of the ownership rights to the lessee upon the expiry of agreements and completion of all leasing payments. In this type of leasing the term of leasing agreement is usually coincides with the term of equipment depreciation. In financial leasing, lessee selects the equipment, and less or just performs its ordering and purchasing. In financial leasing the lessee performs the current and capital maintenance of equipment at his own expense. Financial leasing is one of the mechanisms of funding of equipment selected by the client. Leasing company in certain instances does not even see the equipment, as this is delivered by the supplier directly to the lessee’s site.
Subleasing
In the subleasing, the leasing equipment may be transferred to the third party for leasing by the lessor with the consent of the lessor. In this event the subleasing agreement term shall not exceed the term of the main leasing agreement. Conditions of the subleasing agreement are very similar to conditions of the financial leasing.
Address: Block 3068, Neft Avenue, Darnaghul highway, Baku city.
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