Leasing is a financial instrument in which the property of the leased asset remains with the leasing company while the lessee obtains the right to use the asset by paying lease rentals for the life time of the leasing contract. At the maturity of the leasing contract the ownership of the leased asset is transferred to the lessee at a symbolic cost.

Advantages of Leasing:

- Balanced Cash Outflow: The biggest advantage of leasing is that cash outflow or payments related to leasing are spread out over several years, hence saving the burden of one-time significant cash payment. This helps a business to maintain a steady cash-flow profile.
- Quality Assets: While leasing an asset, the ownership of the asset still lies with the lessor whereas the lessee just pays the rental expense. Given this agreement, it becomes plausible for a business to invest in good quality assets which might look unaffordable or expensive otherwise.
- Better Usage of Capital: Given that a company chooses to lease over investing in an asset by purchasing, it releases capital for the business to fund its other capital needs or to save money for a better capital investment decision.
- Tax Benefit: Leasing expense or lease payments are considered as operating expenses, and hence, of interest, are tax deductible.
- Off-Balance Sheet Debt: Although lease expenses get the same treatment as that of interest expense, the lease itself is treated differently from debt. Leasing is classified as an off-balance sheet debt and doesn’t appear on company’s balance sheet.
- Better Planning: Lease expenses usually remain constant for over the asset’s life or lease tenor, or grow in line with inflation. This helps in planning expense or cash outflow when undertaking a budgeting exercise.
- Low Capital Expenditure: Leasing is an ideal option for a newly set-up business given that it means lower initial cost and lower CapEx requirements.
- No Risk of Obsolescence: For businesses operating in the sector, where there is a high risk of technology becoming obsolete, leasing yields great returns and saves the business from the risk of investing in a technology that might soon become out-dated. For example, it is ideal for the technology business.
- Termination Rights: At the end of the leasing period, the lessee holds the right to buy the property and terminate the leasing contract, this providing flexibility to business.

Payment by installments - a form of payment, in which the buyer pays  the cost of machine after a while or in part, in accordance with the terms of the contract. The maximum amount and period of payment by installments is agreed individually for each customer and its depends on several factors.

Instalment may be granted in the following cases:

If you are already our customer and have a positive history of cooperation with the company «PRINTEX».
If economic information about your company in the past 3 years has a favorable character.

A letter of credit is a document, typically from a bank (issuing), assuring that a seller (Beneficiary) will receive payment up to the amount of the letter of credit, as long as certain documentary delivery conditions have been met. In the event that the buyer (Applicant) is unable to make payment on the purchase, the Beneficiary may make a demand for payment on the bank. The bank will examine the Beneficiary's demand and if it complies with the terms of the letter of credit, will honor the demand.

Letter of credit advantages

- The bank will pay the seller for the goods, on condition that the latter presents to the bank the determined documents in line with the terms of the letter of credit;
- The buyer can control the time period for shipping of the goods;
- By a letter of credit, the buyer demonstrates his solvency;
- In the case of issuing a letter of credit providing for delayed payment, the seller grants a credit to the buyer.
- Providing a letter of credit allows the buyer to avoid or reduce pre-payment.