Financial lease
“Ukrainian Leasing Company” offers operational model of financial lease:
ULC is financing the purchase of equipment specified by Client. UlC owns the equipment, registers and insures it, hands over the equipment to Client, Clients uses it throughout lease term (not less than one year) and by the end of lease term ULC assigns the right of ownership to this equipment to Client.
While offering alternative way of business development to Client using new equipment without drastic extraction of money resources lease scheme may bring such benefits:
- Lessee receives tax credit under the VAT on the whole value of leased equipment;
- Lessee puts purchased by ULC equipment on balance as an asset at its fair cost;
- Lessee charges amortization of equipment according to depreciation rates decreasing the income tax;
- Lessee carries commission fees to gross costs decreasing the income tax.