Nordea Bank offers leasing for companies planning to upgrade their production equipment, increase the size of their transportation fleet or expand their production area by acquisition of equipment, transportation vehicles or property.
Using the service
A Nordea Bank subsidiary, Nordea Leasing LLC, offers commercial customers services to acquire a broad spectrum of fixed assets through leasing, including:
- Rolling stock
- Passenger and cargo vehicles
- Metalworking equipment
- Construction equipment and technology
- Warehousing equipment
- Power-generating equipment
- Logging equipment
- Property, etc.
Leased equipment may be obtained from both Russian and foreign suppliers.
Leasing is a profitable means of acquiring property and a highly flexible instrument for borrowing resources.
Advantages of leasing
- No need to save up funds to finance current company activities, thus allowing a company to obtain up-to-date equipment and technology in sufficient quantities with a minimal one-time payment.
- Leased equipment not only pays for itself but also brings in profit. The company can still borrow funds, for example, by taking out bank loans.
- Leasing payments are based on the value of the equipment, thus significantly reducing taxes on profits.
- Companies can rapidly recap investment expenses by applying accelerated amortisation (up to a coefficient of 3) to the leased property.
- After the lease period, ownership of property and equipment shifts to the lessee (who has used and paid for the property). Leased property is transferred to the lessee at the minimal (possibly zero) remaining cost of the property. In the long term, a company can significantly reduce the cost of production through amortisation of fixed assets. Otherwise, a company may obtain the leased property at market price, which is much higher than its remaining book value, and receive the same amount of additional profit.
A lease contract requires less collateral than lending, because the leased item is the property of the leasing company until the end of the lease period and partially serves to bond the company.