The license to carry out banking operations from Kranbank JSC was revoked. Loan or leasing: which method of financing to choose Really now get a loan for a leasing company

There are two main methods of attracting financing: obtaining a loan and buying property on lease.

To make a decision on the profitability of a loan and leasing for a company, entrepreneur or individual, it is necessary to assess the financial parameters of the loan and leasing offer, as well as the advantages and disadvantages of each financing option.

Having issued online application on our website you can get leasing offers from several dozen leasing companies and see their comparison by the main parameters:

• initial payment (advance);
• lease term;
• the total amount of payments for the leasing transaction;
• general appreciation of property during the leasing period;
• average rise in price per year;
• type of payment schedule

Registration on the website and receiving leasing offers are free.

The difference between leasing and credit

Despite the fact that when lending for temporary use, both cash (monetary form of credit) and property (commodity form of credit) can be transferred, in modern economic relations it is the transfer of funds that prevails and when using the term "credit, lending" they mean the provision of money by the bank to the borrower.

In the lending segment, there are also proposals for accelerated decision-making (so-called express loans). Expedited consideration of the application is possible for consumer loans, as well as loans for the purchase of a car. These types of loans are offered only to individual borrowers. Banks do not offer express lending programs for legal entities.

The subject of leasing can be recorded on the balance sheet of the leasing company, in which case the obligation to calculate and pay property tax lies with the lessor. If the leased asset is registered with the traffic police for the leasing company, it pays transport tax. Also, the leasing company can pay for the insurance of the leased item. Additional costs incurred by the leasing company will be included in the calculation of the lease payments. Equal distribution of expenses for the lease term will allow the client to reduce the burden of making periodic payments for taxes, insurance, etc.

However, it should be borne in mind that when reimbursing additional costs in lease payments, you will need to pay VAT on these costs. If the lessee is a VAT payer, additional VAT as part of payments is not a problem, since VAT will be charged. But for customers who do not pay VAT, these tax amounts will increase the costs of the leasing transaction.

It is extremely problematic to finance the acquisition of used (used) property with a loan. Banks finance only the purchase of used cars. Buying a used property on lease is not very difficult. Of course, there are restrictions on the year of issue of the leased asset; a number of leasing companies do not conclude transactions with used property at all. Nevertheless, obtaining lease financing for such a transaction is quite possible.

Leasing companies are corporate clients who purchase equipment and machinery from suppliers for significant amounts. Suppliers often offer discounts to leasing companies. The provision of discounts for car leasing is especially widespread. In some cases, the amount of the discount can be quite significant, which allows us to offer leasing programs with a zero rise in price (the sum of the cost of a discounted car and leasing interest is equal to the price of a car in the cabin, which allows us to speak of a zero rise in the price of a car for the lessee)

Possessing extensive experience, knowledge and business connections, the employees of the leasing company control and resolve various issues related to the acquisition of the leased asset and the implementation of the leasing transaction.

These questions may include:

• checking the reliability of the supplier and the legal purity of the leased asset;
• agreement with the supplier of the terms of delivery, installation, payment for equipment purchased on lease;
• organization of customs clearance of the acquired property (including with the involvement of reliable customs brokers);
• obtaining favorable insurance rates and assistance in the event of an insured event;
• other issues of interaction with counterparties, tax authorities, etc. on the execution of a leasing transaction.

Disadvantages of leasing

In addition to the advantages of leasing, there are certain disadvantages that must also be considered when choosing a financing method.

During the term of the lease agreement, the lessee, not being the owner of the leased property, can use it in strict accordance with the terms of the lease agreement. Any actions in relation to the leased property (change of the place of operation, sublease, etc.) must be agreed with the leasing company.

In case of violation of the operating conditions of the property (as well as other terms of the lease agreement), the leasing company has the right to withdraw the leased asset.

Also, the lessee cannot provide the leased asset as collateral when receiving a loan.

The lessor, being the owner of the leased property, can pledge it under its loan agreements. At the same time, loans can be obtained both for financing a transaction with this lessee, and for other purposes (including financing transactions with other clients).

In the event a leasing company has financial problems, creditors can seize it by going to court with an application for the seizure of the leased property. Despite the fact that the property will be encumbered by the leasing agreement and the lessee will have the formal right to use the leased asset, such circumstances may complicate the operation of the leased property.

When concluding a lease agreement, it is necessary to pay attention not only to the terms of leasing, but also to the stability and reliability of the leasing company.

Lease payments, in contrast to loan payments, are subject to VAT in full. This circumstance is not a problem in the case when the lessee is a VAT payer and can present the paid tax for offset. However, if the client is exempt from VAT (for example, uses the simplified taxation system (STS), is an individual, etc.), the VAT paid as part of lease payments increases the costs of the lease agreement.

There are leasing companies that are VAT non-payers and specialize in providing leasing to enterprises using the simplified taxation system, leasing medical equipment, etc. But, unfortunately, the number of such companies in the total number of lessors is extremely small.

As can be seen from the above, leasing, as a method of financing investments, has its own advantages and disadvantages, the importance and significance of which may be different for each transaction and a particular client.

The Rosleasing Association is implementing a new project to improve the conditions for financing leasing activities in order to develop uniform approaches to assessing the financial condition and risks of leasing companies, as well as supporting interaction with banks and credit institutions.

According to Elena Skrynnik, Chairman of the Russian Association of Leasing Companies, effective fundraising to finance leasing activities is a key factor in the success of a leasing company. The most common source of financing for leasing companies is a bank loan. However, obtaining a loan from a bank or other lending institutions is accompanied by many problems.

In order to identify the main difficulties associated with organizing financing from leasing companies, the Rosleasing Association conducted a “pilot” study.

The survey results showed that the main problem faced by leasing companies when contacting credit institutions and banks is the lack of a unified methodology for analyzing the financial condition and assessing the risks of a leasing company. In most cases, a leasing company is considered as an ordinary borrower, regardless of the specifics of its activities.

There are a number of objective reasons that make it difficult to correctly interpret the values \u200b\u200bof generally accepted coefficients of financial analysis.

• In various segments of the leasing market, growth is unstable and extremely uneven. This makes it difficult to predict the future cash flows of the leasing company based on the results of the financial analysis.
• The peculiarity of the leasing business is a high share of borrowed funds in the structure of liabilities of leasing companies. This negatively affects the final indicators of financial stability and solvency. And in the end, on the decision to issue a loan.
• Low turnover of receivables and payables associated with the timing of leasing transactions.

Another important factor is the lack of additional security for the company in addition to the object being leased and the right to receive lease payments.

All this makes it difficult for leasing companies to finance their transactions with borrowed funds, which significantly affects the efficiency of leasing activities.

In this regard, Rosleasing is implementing a new Project to improve financing conditions for leasing companies. The main goal is to develop unified approaches to assessing the financial condition and risks of leasing companies for banks and credit institutions. The project includes the following stages:

• Identification of key problems in attracting funding. In the near future, the Association plans to conduct a deeper study of the problems of financing leasing activities using a mass survey;
• Development of a Methodology for Risk Assessment and Financial Analysis of Leasing Activities, which will be recommended to banks and other credit institutions;
• Support for the interaction of leasing companies with banks and credit institutions. Providing advice on financial analysis and preparation of the necessary documentation.

Banks are far from always able to reliably assess the financial position of lessors who do not have IFRS reporting. The solution to the problem will be the transfer of leasing companies to the Central Bank standards

In the first quarter of 2018, the Bank of Russia analyzed the terms of bank lending for the top 20 lessors. The information received is important in the context of the leasing reform that the Central Bank is currently carrying out. The leasing market is the largest financial market in Russia after the banking one. At the end of 2017, the total leasing portfolio broke another record and reached 3.45 trillion rubles. Who are the lessors financed by? Through bonds, bank loans and loans from related parties. Bank loans are in first place: according to the Bank of Russia estimates, the top 20 lessors attracted 846 billion rubles. loans, which form 47% of their liabilities. By the way, the top 20 accounts for 1.8 trillion rubles. assets under RAS, or about 70% of the estimated size of the leasing sector.

Three models

Bank lending conditions determine the financial position of the leasing sector, its ability to compete with alternative financial instruments and the availability of leasing for the client. According to the results, three forms of financing of the largest lessors can be distinguished: without bank loans, mono-lending from the parent bank and lending from a pool of banks. Foreign subsidiary lessors, which in Russia are represented by structures of manufacturers of foreign equipment and machinery, mostly do without loans. They are entirely financed by loans from parent structures.

The monocredit model operates in the largest Russian and foreign banking groups. Their policy does not imply that the subsidiary lessors go out of it, even if other banks can provide better terms. A credit line is opened for the lessor with an issue limit or with a debt limit. Under the credit line, tranches are issued against the security of leased assets. The monocredit model assumes a lack of autonomy for companies when making decisions. The bank's credit committee reviews applications and determines the terms of financing at fixed rates. Thus, the bank assumes both credit and interest rate risk. Under the monocredit model, the parent bank acts as the center of accumulation of the leasing company's profit.

Private non-bank lessors and companies associated with the state (less often - bank subsidiaries), as a rule, attract loans from a pool of banks. The lessors have opened several credit lines in a group of banks on competitive terms. Maneuvering between them allows you to avoid restrictions on credit limits and choose the best conditions. The benefits of a strong relationship with multiple lenders include service at affordable rates. Companies that attract loans on competitive terms have their own credit expertise. They make autonomous decisions on clients, have their own risk management system and often have a credit committee. Unlike subsidiary banking companies, the lenders of such lessors take the risk not on a specific lessee, but on the company as a whole.

Cost of loans

Most of the credit lines are financed by lessors at fixed interest rates (83% of the portfolio), which are not renegotiated during the life of the line. Floating interest rates apply to 15% of the debt. In addition, the so-called variable rates are used, they are fixed, while the bank has the right to revise the rate level in the event of significant events. The high share of loans at fixed rates is due to intragroup financing. Fixed rates are used exclusively in mono-credit models where lessors are tied to the parent bank. If we remove them from the calculation, the share of loans at fixed rates drops to 44%, and the share of loans at floating rates increases to 48%. Thus, on competitive terms, banks shift the interest rate risk to the lessor. The main benchmark for floating rates is the key rate of the Bank of Russia (55% of loans at floating rates).

The weighted average cost of loans for the leasing sector in the first quarter of 2018 was 8.53%. There is a pronounced economies of scale in the cost of loans: as the assets of borrowers increase, all other things being equal, interest rates for them decrease. There is an interest rate differential between the cost of intra-group financing and the cost of financing on competitive terms: bank subsidiaries are credited at 8%, while non-bank companies - at 9%.

The problem of reliability

According to the requirements of the Bank of Russia, lenders are required to classify loans to lessors by quality category. The leasing sector is characterized by moderate risk with a loss probability of up to 20%. Banks value their subsidiaries more highly. Apparently, the lease credit market is not risk-oriented. An indication of this is that there is no relationship between the interest rate on loans and the quality category, that is, interest rates do not include the credit risk premium. The anomaly is explained by two factors - intragroup financing and the presence of the state in the capital of large lessors.

For a number of reasons, banks cannot reliably assess the financial position of lessors - those who do not resort to a mono-credit model. The objective limitation is that most companies do not have IFRS accounting and the uncertainty of the reliability of management reporting. Hiding the actual quality of the lease portfolio can occur due to a wide range of opportunities for lessors, ranging from restructuring and transferring clients to lease and ending with the classification of bad debts into term receivables. Even if the client defaults, the property is transferred to the lessor's balance sheet, and banks have no formal basis for recognizing loan impairment. In the absence of property impairment provisions or allowances, lessors can continue to demonstrate satisfactory credit quality of their assets. The solution to these problems is not only the transfer of lessors to a unified chart of accounts for non-bank financial institutions and industry accounting standards of the Bank of Russia, but also the development of specialized indicators of the quality of their portfolios, taking into account the seizure of property, its depreciation and sale, as well as the introduction of requirements for disclosure of information in including indicators of transactions with property. It is planned that these innovations can be proposed after the reform of the leasing market, which is being carried out with the active participation of the Bank of Russia. The consequence of this will be an increase in the credit quality of the leasing sector.

A significant part of leasing companies in Russia originated initially as subsidiaries of banks. Many of them later became independent firms, however, even having acquired formal independence, many leasing companies remain tightly tied to the bank, as they need a significant amount of credit resources. These funds are used to purchase property, which is provided to lessees (clients) on a financial lease basis. For the rapid development of business, the company's own funds, as a rule, are not enough, and thus leasing companies fall into the category of clients of credit institutions.

Dmitry Shabalin, Deputy General Director of Lokat Leasing Russia, told BO about two main forms of cooperation between leasing companies and banks. The first is when banks are the main source of credit for leasing companies. This is true both for firms that are subsidiaries of banks and for independent lessors. The second form of cooperation is the attraction of clients by a credit institution for a leasing company. Such a scheme of work is typical for the players in the financial lease market, which are bank "daughters". “All 'bank' leasing companies have a share of clients attracted by a credit institution, at least half of the portfolio of transactions,” assures Dmitry Shabalin.

Depending on the degree of independence of the subsidiary leasing company, the parent bank can provide the lessor with additional services: administration of current transactions, verification of potential clients, legal support. In some cases, a credit institution acts as a client-lessee for a leasing firm. This mainly concerns financial car lease transactions and banking IT equipment.

From loans to IPO

“Among all the listed options for cooperation, of course, direct bank lending is in the first place,” says Dmitry Shabalin (Lokat Leasing Russia). "However, its size is limited by the standard of the Bank of Russia." The bank can lend to one borrower for an amount not exceeding 25% of the credit institution's equity capital. When this limit is reached, banks and leasing companies have to invent other ways of financing. The solution could be either splitting up the subsidiary leasing business, creating a whole group of subsidiary leasing companies, or organizing syndicated lending or issuing securities. Bankers also have other ways to find money for a lessor, for example, entering the stock markets, participating in the preparation of securitization schemes, organizing an IPO. According to the specialists of the leasing company Center-Capital, the bank often acts as an indispensable financial advisor and assistant in organizing the attraction of Western financing and preparing CLN (Credit Linked Notes, Eurobonds-credit notes. - Note "BO") for an average leasing company.

According to Denis Makhov, CFO of VKM-Leasing, promissory note programs and bond loans are most relevant for independent or fast-growing companies that are not backed by financial institutions or there is no strong support from the manufacturer. For example, if at the initial stage of development the company "VKM-Leasing" actively enjoyed the support of the company "Ruzkhimmash", now, in order to maintain the existing rates of development, the lessor will have to enter the stock market.

Loan for leasing - evidence of weakness or reliability?

Leasing executives agree that bank loans remain one of the most popular ways to raise funds, but they disagree on the assessment of companies that primarily use loans. “Any market company uses primarily bank loans to finance ongoing leasing projects,” says Pavel Korzhavin, financial director of Globus-Leasing. Denis Makhov (VKM-Leasing) believes that loans from banks are a traditional way of raising funds for leasing companies in order to finance transactions. “Loans or the use of credit lines is an evolutionary element in the development of any leasing company,” explains the expert. When a company completely chooses the limit set by the partner bank, it either stops growing, which, as a rule, does not happen, or seeks financing of a different kind. This is an inevitable stage, since it is required to replace the attracted loans with something and release the established bank limits. To be able to develop, a leasing company needs to use the entire range of financial instruments to attract borrowed funds (promissory notes, bonds, securitization, IPO).

Experts also differ in their estimates of the share of bank loans in the total mass of loans from leasing firms, but most of them agree that this figure does not fall below 60%. According to the financial director of Scania Leasing, Alexander Ryabchinsky, now bank loans are the main source of financing for Russian leasing companies and account for up to 90% of the total amount of borrowed funds received. Of course, there are exceptions, the expert notes. For some companies, as a rule, affiliated with government structures, a significant share of financing can be authorized capital or bond loans.

Financial Director of the Stone-XXI company Vladimir Panibratets is more restrained in his assessments. He believes that the share of loans is about 80% of the total volume of debt financing of leasing companies. And Dmitry Shabalin ("Locat Leasing Russia") speaks about an even smaller share of loans - 60% of the size of the sources of the formation of liabilities of the leasing company. However, the expert notes that other sources of money (advances from lessees, commercial loans from suppliers, the lessor's own funds) play a much smaller role.

Statistics of mentioning the word "leasing"

In Russian print media over the past 10 years

Popular and unavailable loans

In the leasing market, it is often said that there are many alternatives to bank loans - bonds or securitization of client liabilities. Only now, many lessors, especially small firms, are still unable to master such methods of obtaining financing. Someone has a client's credit rating is not high enough, someone cannot find specialists to conduct a transaction. Therefore, a bank loan remains, albeit not the cheapest (on average, loans are issued at 14%), but a proven and affordable way to find money.

In the opinion of Center-Capital specialists, the situation is unlikely to change, and loans will remain popular in the near future. Indeed, despite the fact that the same issue of bonds is far from a new way to get money, the number of leasing companies that have issued such securities is very, very small today. Dmitry Shabalin (Lokat Leasing Russia) also believes that there will not be a significant reduction in bank loans provided to leasing companies. First, there is simply nothing to replace them, especially in the context of the constant growth of the leasing market, and for leasing companies this is the easiest way to attract borrowed funds. Secondly, many Russian banks today have a real problem of placing their free funds, and the leasing business is a fairly reliable option for investing them.

However, bank loans to leasing companies are not always easy. Of course, the easiest way is to get a loan to captive leasing firms. But if an independent lessor contacts the bank, the process of obtaining a loan becomes much more complicated. Not all credit organizations adequately assess leasing firms, trying to tie the financed contracts to some type of production. Therefore, the number of banks willing to lend finance lease operations is limited, as well as the amount of loans that leasing companies can attract. This is due not only to the restrictions of the banks, but also to the territorial requirements. For example, many lending institutions refuse to issue a loan if the lessor or his client is located in another region.

The bankers' "whims" have an explanation. “The regulations governing the work of banks are not fully adapted to the conditions of leasing,” says Denis Makhov (VKM-Leasing). "In particular, the ratio analysis, which is used for lending to industrial enterprises, cannot be used for leasing companies." Therefore, despite the fact that the lessor shows growing indicators, banks, relying on regulations, place the company in the category of risky and low-class clients, with all the ensuing consequences (rate increase, reduction of financing terms).

But even if we do not take into account the fact of imperfection of the regulatory framework, it is still quite difficult for banks to make a decision to issue a loan to a lessor "from the outside". In case of non-payment on a loan, it will be easy to deal with a subsidiary company. And a third-party organization can behave completely unpredictably, like its client, under the contract with which the loan was issued. “The main problem in lending to lessors is the degree of credit risk,” says Dmitry Shabalin (Lokat Leasing Russia). After all, a leasing company does not by itself generate revenue sufficient to repay a bank loan - this is done by the lessee. Therefore, by providing a loan to a leasing company, the bank assumes not only the credit risk of the borrower-lessor, but also the risk of the end user of the funds - the lessee. “When making small-scale leasing transactions, the bank's analysis of the lessee is economically ineffective - this reduces the possibility of financing such transactions,” says Vladimir Panibratets (Stone-XXI). “In addition, credit organizations sometimes require a surety from the lessee, which the latter are not always willing to do.” However, this scrupulous approach of the bankers is bearing fruit. “So far, the share of doubtful debts in the Russian leasing sector is much less than the share of bad bank loans in other industries,” notes Dmitry Shabalin.

Another serious obstacle in providing loans to third-party lessors for banks, according to Tatiana Shulga-Morskaya, Deputy General Director of Expo-Leasing, is the lack of transparency of lessees. This leads to the fact that the bank considers and evaluates projects for which a loan is requested for a long time, and makes it necessary to provide a huge amount of documents from both the lessor and the lessee. But Alexander Ryabchinsky (Scania Leasing) is sure that the main difficulty is the size and name of the leasing company. The more and more famous the company is, the better the conditions that banks can offer it. But small companies will have to work hard to prove their reliability to the bank. In addition, according to Alexei Smirnov, CFO of the Karkade leasing company, leasing firms that are not part of banking and industrial groups, when attracting financial resources through a bank, face the presence of a competitor in its structure, which sometimes seriously complicates the situation.

Exercise for an investment banker

Leasing companies that specialize in the financial lease of property, as a rule, do not have specialists on their staff who, for example, can organize the issuance of domestic bonds or Eurobonds. In this case, leasing firms often use the help of bankers. Banks themselves can come up with this or that initiative. Moreover, if the lessor is closely connected with the bank, then the field for activity expands. For example, on the basis of cooperation between the investment bank "KIT Finance" and its subsidiary leasing company "Magistral Finance", as well as the firms "Investment Partner" and "United Investors", the first transaction on the securitization of leasing obligations was carried out. It allowed the lessor to receive a large amount of funds - 12.57 billion rubles on favorable terms (at 7.875% per annum). The main point of the scheme was to collect into a single pool (package) obligations under the leasing contracts of the Russian Railways, then resell them to a foreign special-purpose company - Red Arrow International Leasing PLC, which will act as the bond issuer.

According to Konstantin Yakovlev, General Director of the leasing company Magistral Finance, the deal had a complex structure, like any process of securitization of assets, which in itself is quite difficult and expensive. After all, many links are involved in it: originator, main and backup service agents, underwriters, money manager, legal advisers, paying agent, rating agency. It is unlikely that Magistral Finance would have been able to organize the issue of securities without the support of the parent investment bank. Interestingly, the credit institution itself initially considered leasing as a structured financing option. According to Maxim Tsyganov, Managing Director of KIT Finance Bank, it was important for his organization to find a new market segment where he could offer structured products as an investment bank. That is, not only to support the subsidiary leasing company with its own injections, but also to help it get additional funds for development at a low price and for a long time. For this, the scheme of securitization of leasing obligations just came up.

The road to a brighter future

Now on the Russian financial lease market there are more independent companies than “bank” lessors. However, this fact does not prevent the strengthening and development of cooperation between leasing firms and bankers. Center-Capital believes that over time the interest of banks in leasing companies as clients will increase. After all, the players in the financial lease market are large clients and borrowers. And the lessor, as a rule, does not come to a credit organization empty-handed, but with his clients, who in the future may start working with the bank itself.

Pavel Korzhavin (Globus Leasing) predicts that in the future there will be a simplification of lending procedures for leasing companies. At the same time, scoring approaches will be developed. In addition, banks will become more actively involved in organizing bond issues of leasing companies.

Tatiana Shulga-Morskaya (Expo-Leasing) believes that leasing companies will organize more and more complex projects that require close cooperation with the lending bank and joint work to organize financing. Those lessors who now work with only one financial institution, as their business grows, will expand the list of partner banks, which will cause increased competition between credit institutions for interesting leasing projects.

As for the alternative lending instruments for attracting financing, the experts interviewed by BO were also unanimous. They believe that an increasing number of lessors will turn to banks for help to place their bills and bonds, and the interest of leasing companies in a new and promising direction for them - securitization, as well as entering the market through an IPO, will increase significantly.

Partners

Difficulties that stand in the way of cooperation between leasing companies and credit organizations:

• short lending terms;
• restrictions on the credit limit for one borrower;
• the requirement to transfer turnovers to the financing bank;
• the requirement for the location of the leased asset in the same region as the bank;
• provision of additional security to the leased asset, including the surety of the lessee;
• the need for analysis by the bank of the lessee;
• requirements for the synchronization of the lease payment schedule and the loan repayment schedule;
• long terms for obtaining a loan for investment lending, project financing and reimbursement of investment costs;
• restrictions on short-term lending to replenish working capital.

"," Leasing - Start of SMEs "," Leasing - Favorable Conditions ".

For these products, leasing companies can obtain financing for the acquisition of leased items for the purpose of their further transfer to financial lease to SMEs. The collateral provides for a pledge of leased items with a discount of 40% of the value under the supply agreement. In this case, the leased items must be insured in a reliable insurance company with an up-to-date reliability rating of at least:

• "B" in accordance with the rating of reliability of insurance companies Expert RA;
• “RuA” on the national scale in accordance with the rating of insurance companies “Standard & Poor's”;
• “BBB (rus)” on the national scale in accordance with the financial strength rating of insurance companies FitchRatings;

Participation in the acquisition of leased items (funds of an SME (lessee) and / or a leasing company) - at least 30% (at least 20% in the case of the leasing product "Leasing - Target") of the amount of the supply agreement (purchase and sale).

To participate in the acquisition of leased items under the Leasing - Start SME product, funds received by the SME subject within the framework of federal programs / programs of the constituent entities of the Russian Federation to support start-up entrepreneurs (if these programs provide such an opportunity) can also be used.

Selection procedure for leasing companies

1. The leasing company independently checks its compliance the conditions for the selection of partners who are leasing companies under the SME financial support program .
2. If the selection conditions are met, the leasing company fills out a loan application in accordance with the selected leased product and provides it to JSC "SME Bank" together with a set of necessary documents.
3. JSC "SME Bank" analyzes the leasing company for compliance with the selection conditions for participation in the Program, assesses its financial position and determines the size of the lending limit.
4. JSC "SME Bank" sends a notification to the leasing company about the possibility of participating in the Program and information on setting the limit.
5. After receiving consent from the leasing company with the provided conditions, JSC “SME Bank” concludes a loan and security agreements with the leasing company.

To consider participating in the state SME Financial Support Program, leasing companies must meet the selection criteria.

The final decision on the participation of a leasing company in the state program of financial support for SMEs is made by JSC SME Bank based on the results of a comprehensive assessment of the financial position and reputation of the leasing organization, in accordance with the internal documents of JSC SME Bank. This assessment is carried out if the leasing company meets the above requirements.

JSC "SME Bank" reserves the right to refuse a leasing organization to participate in the state program of financial support for SMEs, or to suspend the participation of a leasing organization in the Program if financial or non-financial factors are identified that, in the opinion of JSC "SME Bank", may affect financial stability of the leasing company, or carry reputational risks for the state corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)".

The support is of a targeted nature, in this regard, SME Bank JSC will control the provision of property by leasing companies to SMEs using the leasing mechanism, both remotely (based on reports and documents provided by leasing companies) and with a visit to the place of implementation by leasing companies. and SMEs in their financial and economic activities.