Leasing is a vital source of investment financing for SMEs and is particularly important in the current context of financial constraints and limited access to credit. Leasing provides financing for vital business assets such as plants and machinery, vehicles, office technology, agricultural and construction equipment, medical equipment and renewable energy generators, among many other assets.
Leasing is particularly attractive for SMEs with scarce financial resources, because it finances up to 100 per cent of the cost of an asset without requiring supplementary guarantees.
In addition, as lessors retain ownership of the leased asset they can provide funding to businesses when other types of lender cannot. The leasing industry is therefore particularly well-placed to support SMEs with high growth potential and start-ups.
The EBRD offers technical assistance with the creation of a modern, facilitative legislative environment for the development of leasing services in our countries of operations. This supports our efforts to promote leasing through the Bank’s investments in financial institutions.