Leasing in the agricultural sector: what it is, types and features
Agriculture is one of the key sectors of the Ukrainian economy, which requires significant investments in machinery, equipment and infrastructure. However, not all agricultural enterprises have the opportunity to make large one-time expenses for the purchase of necessary assets. That is why leasing becomes an effective financing tool that allows you to modernize production and increase its efficiency without a significant financial burden.
What is leasing in the agricultural sector?
Leasing is a form of long-term lease that allows enterprises to obtain agricultural machinery, equipment or vehicles for use with the subsequent possibility of redemption. Unlike a loan, leasing provides for more flexible financing conditions, lower initial costs and the ability to adapt payments to the seasonality of agribusiness.
Types of leasing for the agricultural sector
In the agricultural sector, the following types of leasing are most common:
- Financial leasing – involves the gradual payment of the cost of the asset with subsequent redemption. This is the best option for those who plan to become the owner of the equipment after the contract ends.
- Operational leasing – short-term rental without mandatory redemption. Used for temporary or seasonal needs, when the equipment is needed only for a certain period.
- Reverse leasing – the enterprise sells its equipment or machinery to the leasing company, and then leases it. This allows you to free up working capital for other business tasks.
- Leasing with state support – special financing programs that provide for compensation of part of the payments to farmers by the state. This makes leasing even more affordable for farmers and agricultural companies.
Features of agricultural leasing
- Flexible payment terms – the agricultural business depends on seasonality, so leasing companies such as “TEKOM-Leasing” offer adapted payment schedules that take into account the periods of harvest and product sales.
- The ability to update the fleet of equipment – operational leasing allows you to regularly update agricultural equipment without the need to buy it out.
- Tax benefits – leasing payments can be included in the company’s expenses, which reduces the tax burden.
- Fast processing – compared to a bank loan, leasing agreements are concluded faster and with a minimum package of documents.
Why choose “TEKOM-Leasing”?
Since 2007, the company “TEKOM-Leasing” has been helping Ukrainian farmers develop their business by offering favorable and transparent financing conditions. We work with leading manufacturers of agricultural machinery and equipment, providing our customers with access to the best solutions on the market.
If you want to expand your business, update your technical fleet or optimize costs, leasing is an effective and modern tool.
Contact “TEKOM-Leasing” and we will help you find the best solution for your company!
