1. What are the benefits?
2. What is typical Legal Documentation?
3. What is a procedure for credit assessment?
4. What is a tenor of the Financing?
5. What is ECA?
6. What is a standard Downpayment?
7. What is a standard periodicity of the lease payments?
8. Is additional security needed for the leasing?
9. Is Insurance of the lease object obligatory?
10. What are conditions for maintance of the leased equipment?

1. What are the benefits?
More than any other financing method, leasing preserves company’s liquidities. Leasing allows you financing of investments at one hundred percent including miscellaneous expenses such as travel, installation or even the professional training expenses.

2. What is typical Legal Documentation?

• Acquisition agreement between lessor and seller of the asset (can be tri-partite with the involvement of the lessee).
• Lease agreement between lessor and lessee.
• Loan agreement between lessor and bank.
• Additional security documentation (e.g. pledge of export receivables).

3. What is a procedure for credit assessment?

4. What is a tenor of the Financing?
Standard tenor of the deal is 3 years. Still, with ECA coverage can be up to 7 years (subject to the min amount of the deal EUR3m).

5. What is ECA?
Export Credit Agency.
The most khown to Ukraine are Hermes (Germany), Coface (France), US-Exim (USA), NEXI (Japan).

6. What is a standard Downpayment?
Downpayment for tailor-maid equipment may start from 15% of the lease value and heavily depends on the financial strenghth of the Lessee and the residual value of the equipment.

7. What is a standard periodicity of the lease payments?
Lease payments are paid on monthly basis (on advance) but there is possibility for other term depends on the Lessees’ business cycle

8. Is additional security needed for the leasing?
Usually additional security is not needed. Lease object under the lease agreement automatically becomes the security.
Still, for unique equipment the leasing company may require additional security such as:

• Buy back from the producer;
• Parent company guarantee or Letter of Comfort for subs;
• Commitment of UBO (for SME);
• Additional assignments, pledges, mortgages etc (tbd)

9. Is Insurance of the lease object obligatory?
Yes, it’s obligatory. Usually concluded by the Lessor in chosen insurance company.
Insurance fees are included in the lease payments.

10. What are conditions for maintance of the leased equipment?
Conditions are mandatory.
Done by the Lessee at preliminary approved workshop(s) of the service network of the Manufacture.
Payments for service may be included in the lease payments