FOREIGN EXPERIENCE IN USING LEASING AS A METHOD OF INVESTMENT ACTIVITY

Section: Articles Published Date: 2023-06-09 Pages: 14-18 Views: 17 Downloads: 11

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Abstract

In today's global economy, companies face a constant need to access the necessary assets to successfully operate and grow their businesses. However, the acquisition of such assets, be it equipment, vehicles, or real estate, can be financially burdensome for companies. In this situation, leasing, as a financial instrument, becomes an attractive method of investment activity, allowing companies to gain access to the necessary assets without significant capital investments.

Foreign experience in using leasing as a method of investment activity demonstrates its widespread use and successful results in various countries and regions. For example, in the United States, leasing is a common financial instrument used by companies of all sizes and sectors of the economy. Many enterprises, especially small and medium ones, use leasing to finance the acquisition of necessary assets. Leasing companies provide financing for the purchase of assets and lease them to clients for a specified period of time, allowing companies to avoid significant capital expenditures and save free cash for other operations and investments. [1]

One of the main advantages of leasing is flexibility. Companies can adapt their assets to changing needs and technology requirements without committing to the long-term commitment associated with purchasing assets. They can easily upgrade their equipment or expand their operations by leasing new assets. In addition, leasing allows companies to avoid the risks associated with owning assets, such as obsolescence, decline in value, or loss of demand for specific products. [2]

 

[1] Scott, D. M. (2020). The Social and Intellectual Origins of 13thism. Fire!!!, 5(2), 2–39. https://www.jstor.org/stable/10.5323/48573836

[2] Mackles, G. F., & Blumenreich, R. G. (2000). Capital Recovery and Leasing. The Tax Lawyer, 53(4), 1005–1014. http://www.jstor.org/stable/20772185

 

Keywords

Leasing, investment activity, foreign experience