Leasing

Leasing is a long-term lease with an option to purchase at depreciated value. This convenient financial instrument enables enterprises to upgrade their basic assets “here and now”, having obtained the use of a certain fixed assets (vehicles, real estate, equipment, machinery etc.) and saved on tax deductable payments.

There are some benefits of leasing to be outlined:

• Firstly, a leasing item is immediately handed over to a lessee that gives an opportunity to make provision for depreciation and reduce income tax.
• Secondly, lease payments are exempt from VAT and refer to gross expenditures fully.
• Thirdly, the lessee immediately receives a tax credit for the full amount of VAT against the cost of purchased equipment.
• Fourthly, the leasing item can’t be the subject of tax lien (seizure); moreover, it is not subject to adverse claim until a full payment has been made to the account of the bank.
• Fifthly, the leasing item can be insured by lessee and bank.

Applying for an installment for acquired property, it is not necessary to provide the bank with such large package of documents as for loan, and period for application processing is significantly less. The specialists of the Kontrakt Bank adjust this service in compliance with the requirements of customer business.

Principal leasing conditions at the bank "Kontrakt" are as follows:

• Lease category — financial;
• Down payment — 20% of leasing item cost;
• Leasing period — from 12 to 60 months;
• Lease payments – monthly or quarterly in equal parts or in accordance with individual schedule that is based on the specificity of customer business;
• Appreciation interest – from 9.5% to 13% per annum without exchange rate pegging;
• Fees and hidden payments — not applied.