What is Leasing?

What is Leasing?

Leasing is a tool, used to finance the purchase of fixed assets (medical, construction or other equipment, cars, trucks, appliances, etc.).

The leased asset remains within the property of the leasing company while the lessee obtains the right to use the asset by paying monthly lease rentals until the lease expires.

At the maturity of the contract the ownership of the leased asset is transferred to the lessee. However the operating lease gives the customr alternative to replace, return or leave the asset for himself.

There are two types of leasing: Financial and Operating. For more details, click here.

 

Leasing Role on Market:

Leasing is a multibillion-dollar industry in the modern world. 80 % of companies in developed countries use this financial tool. 1/3 of total investments in fixed assets come through leasing.

Despite the business being recently established on the Georgian market, it turned out very dynamic. As of today the total volume of leasing transactions exceeds GEL 75 million.

The general purpose of leasing is to develop small and medium businesses, which directly effects the country’s economic development. By fostering the companies within this sector leasing expands/advances the actual production, increases the quality, productivity, amount of employees.

Companies have opportunities to expand their businesses, upgrade the current equipment, create and improve new business entities or to release the resources invested in fixed equipment.