Leasing is a tool that allows your company to quickly acquire the necessary assets under a long-term rental agreement with the option of subsequent purchase. The client gradually pays the leasing company the cost of the asset according to the approved payment schedule and the agreed initial down payment.
Leasing combines the elements of rental and credit. In essence, it represents a profitable installment plan, allowing a company to obtain the required — and usually expensive — asset now, even when it does not currently have the necessary resources but expects to receive them in the future
The difference between leasing and a loan lies in the lower interest rate and simpler processing. The difference between leasing and rental is the possibility of purchasing the asset later on (in the case of financial leasing).
The participants in a leasing agreement are:
- - leasing company (the party that purchases the leased asset and transfers it to the client);
- - lessor (the party that requires a specific asset);
- - seller or supplier (the company that owns the asset and is ready to sell it);
- - insurance company.
As of today, there are three types of leasing commonly used in Russian practice: financial, operating, and sale-and-leaseback. The most widely used type is financial leasing.
Financial leasing
This is one of the forms of long-term asset rental (such as equipment, vehicles, or real estate), in which the lessee obtains the right to use the asset for a specified period of time, after which they may purchase it at its residual value.
Advantages of Financial Leasing:
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Preservation of working capital (the company does not need to divert significant funds to purchase the leased asset — it is enough to pay only a small portion of its cost upfront and then make regular lease payments according to the agreed schedule. This is especially beneficial for companies with high operating turnover);
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Clear payment structure (companies know exactly how much they need to allocate to cover their lease payments. This allows them to optimize cash flow and improve their overall financial stability);
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Faster approval process (leasing companies are generally more flexible in assessing a client’s creditworthiness compared to banks);
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Tax benefits.
Leasing with PITBIT
Our company offers clients the opportunity to purchase mining equipment through a leasing program.
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Initial down payment: 30%;
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Leasing term: from 18 months;
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Minimum contract amount: from 10 million RUB;
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Limit for the first leasing deal: 30–40 million RUB.
The leasing term and initial down payment may be reduced depending on the results of a further financial analysis of the company, while the deal limit may be increased.
Stable operations and financial reliability are your key advantages!
We strive to offer the best leasing conditions for our clients by expanding partnerships with other leasing companies.
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