Risks in leasing agreements and legislative changes affecting the leasing market in Ukraine
Leasing has become one of the most popular financial instruments in Ukraine, especially in conditions of economic instability and limited access to bank lending. It allows businesses to modernize, develop and maintain working capital. However, like any instrument, leasing is not without risks. In addition, legislative changes constantly affect the terms of concluding agreements and the rules of the game in the market. In this article, we will consider the key risks of leasing agreements and important legislative innovations that everyone working in the leasing sector should know.
✅ Main risks in leasing agreements
1. Legal inaccuracies in contracts
The most common risk is an incorrectly drawn up contract. The lack of clear obligations of the parties, conditions for early termination, force majeure or property rights can lead to conflicts or litigation.
How to avoid:
Involve a specialized lawyer, carefully check the type of contract (operational or financial), details on depreciation, rights and obligations of the parties.
2. Currency and financial risks
In conditions of volatility of the hryvnia, transactions in foreign currency may cause unforeseen expenses. In addition, when the discount rate changes, leasing payments may increase.
How to avoid:
Choose transactions in the national currency or fix the exchange rate in the contract. Check for the availability of mechanisms for reviewing the conditions.
3. Risk of property loss
In the event of non-payment or force majeure (for example, war, destruction of the facility), there is a risk of losing the leased property without compensation.
How to avoid:
Insuring the leased property, including flexible restructuring conditions or deferral of payments in the contract.
4. Opacity of the leasing company
Unscrupulous or new companies on the market may not have enough resources, experience or guarantees to stably support the deal.
How to avoid it:
Choose proven lessors with experience, an open history, an official license and positive reviews.
⚖️ Legislative changes: how do they affect the leasing market?
Ukrainian leasing legislation continues to adapt to EU standards, and this opens up new opportunities – but also requires businesses to adapt to new norms.
1. Law “On Financial Leasing” (updated in 2021)
The law, in force since 2021, clarified a number of rights and obligations of the parties, regulated the issues of registration of leasing companies and the subjects of agreements, making the market more transparent.
Key changes:
- Transparency and access to information about companies in the NBU register.
- Possibility of leasing third-party property.
- Protection of the rights of the consumer-individual.
2. New regulatory requirements of the NBU
From 2022, non-bank financial institutions, including leasing companies, are subject to the regulation of the National Bank of Ukraine. This means:
- strengthening control over licenses;
- reporting and transparency requirements;
- risk management standards.
This helps to increase confidence in the market, but also requires more discipline from companies.
3. Tax changes and VAT
Lessors and lessees should closely monitor:
- changes in VAT rates (especially when importing equipment);
- tax benefits for “green” equipment;
- recognition of leasing expenses in financial statements.
Leasing remains an effective financial tool for business development, but only if you pay close attention to legal and financial details. Legislative changes that bring the market closer to European standards also create new challenges and opportunities.
✅ To avoid risks:
- work with proven companies;
- study the terms of the contract;
- follow current legislation.
TEKOM-Leasing always complies with current legislation, supports a transparent cooperation policy and provides professional support at every stage of the leasing agreement.
