As a matter of fact leasing is an effective solution for modernizing and expanding production, allowing your enterprise to start implementing large projects with limited funds, to preserve the existing credit lines, to optimize taxation, to use profits efficiently.

First, we will give several boring definitions to ensure common understand of the problem.

According to Federal Law # 164 dd October 29th 1998 — FL "About finance lease (leasing)" with ammendments dd January 29th 2002:

Leasing is an array of economic and legal relations arising from a Leasing Agreement implementation including the purchase of the subject of leasing.

Leasing Agreement is an agreement according to which the Lessor shall acquire the property specified by the Lessee from the seller specified by the Lessee and transfer that property to the Lessee for temporary possession and use for a fee. The Leasing agreement can stipulate that the choice of the seller and the property acquired is made by the Lessor.

Leasing activity — is a kind of investment activity of acquiring property and transferring it for lease.

Subject of lease — is any sort of inconsumable things, including enterprises and other property, buildings, installations, equipment, vehicles and other movables and immovables, that can be used for entrepreneurial business. The subject of leasing transferred for temporary possession and use to the Lessee is owned the Lessor. It can be stipulated by the Leasing Agreement that the subject of lease becomes the property of Lessee upon the expiration of the Leasing Agreement or before this moment according to the terms agreed upon by the parties.