Leasing has many things in common with logistics as it offers solutions for financing the supply chain, for the development of a new business or an already existing one. If at the beginning of the financing through leasing mostly cars were sold, in time it evolved to the acquisition of equipments and real estate.

In 2003 cars, commercial vehicles and equipments were sold in leasing. The financing for lands and buildings appeared in 2006. the leasing market for cars evolves constantly, and the leasing for commercial vehicles, equipments and real estate increased rapidly because in Romania there is a need for many constructions and infrastructure. Razvan Paduraru Sales Manager Automotive BCR Leasing stated that BCR Leasing portfolio of 2007 shares between cars (43,8%), commercial vehicles (26,8%), equipments (21,6)% and real estate (7,8%).

Leasing vs. bank loans

Leasing has many fiscal and calculation advantages. For example, VAT is not paid during acquisition time, but it is included in the installments and all the payments are deductible (insurance, differences of rate, etc.) On the other side, leasing can offer to companies an efficient administration of their financial resources.

Companies want to invest other people’s money for buying cars or equipments and to use their own resources for other investments that can be paid off faster. Leasing also offers an exact payments schedule and this way the client knows when he must pay. Financing through leasing is very accessible for any company no matter how its present financial situation is.

The necessary documentation is very simple: it is analyzed and the answer is given in maximum 48 hours. The client has the opportunity to choose his provider, The goods come with insurance concluded with  the most important insurance companies, logistic assistance for registering them and help for custom documentation.

Real estate leasing is increasing

Presently, on Romanian market the financial leasing is used in over 85% of cases while in the western parts of Europe the operational leasing is most required. BCR Leasing offers a complete package of services: consultancy from field professionals, insurances at important companies, logistic services during the whole contractual period, etc.

Financing for vehicles allows the acquisition of cars, buses, trucks and trailers, construction equipments. General conditions for leasing are: advance payment of maximum 5% of the value of the product (can reach even 50%) or the products of maximum 5000 euro, the maximum depending of the company’s financial results and the credit service period of 12-60 months.

There is also the financing for equipments, leasing offers solutions for warehousing, agriculture, industry, medical industry or IT. This type of leasing has evolved during the last three years and the products can be bought from Romanian and foreign providers.

The conditions required include that the value of the object be of minimum 50,000 euro and the advance payment of at least 10% of the value of the product and the payments can be monthly or quarterly.

Leasing for real estate is relatively new on the market and comes to support the companies that want to buy office spaces, industrial parks, hotels, commercial spaces, etc. Besides with the classic financing method there is the possibility that a company owning a building sell it to the leasing company and then buy it back in monthly installments.