OREANDA-NEWS. April 13, 2011. Starting with 3 quarter, 2010 leasing market began rapidly grow and some of the indicators approached pre-crisis levels. The underlying trend for the current assessment of market potential was the growing activity of corporate clients, reported the press-centre of VAB Leasing.

At the same time while business volumes increase the tendency to increase the cost of leasing contracts is observed in in the portfolios of leasing companies. Thus, the average cost of leasing contracts up to date is about 1.12 million UAH. (VAB Leasing has - about 300 thousand UAH). The value of this parameter depends on the segmentation of the company's portfolio and the priority to promote the leasing services for specific client groups. This is the conclusion reached by VAB Leasing experts during the briefing, "The leasing market: trends and new opportunities amid growing lending, which was held at the office of VAB Bank.

"The priority direction for our company is small and medium-sized businesses. Decision making velocity and possibility to get a car in use for most clients have priority importance. And secondly, leasing service allows companies to focus on core activities and forward issues related to the equipment servicing, to the leasing company. That is, for many companies, leasing is not just an alternative financing, but also a way to optimize the relevant labor"- explains Lyudmila Zolotaryova, VAB Leasing General Manager.

The expert marks, that amid growing recovering market increases share of short-term financing. Potential customer still carefully accepts the debt liabilities. In addition, the maximum recovery of interest in leasing services is significant in the segment of small and medium businesses, which in most cases focused on covering the current needs and tries to raise borrowed funds on the period up to 2 years.

"Leasing medium-term product becomes the optimal solution for small companies, preferring consider their possibilities relative to repayment over a short period and often are not willing to bear longer risks. But what is clear - share of short-term financing increasing says about gradual restoration of financial activity small and medium businesses and for leasing companies this clearly positive signal for the development offers line and updates service packages".

According to Lyudmila Zolotaryova, the most demand in this segment has transport (more than 51% of sales) and farm equipment (more than 12%).

"In the first quarter traditionally the greatest interest represents by technique, which is designed to handling of soil - this seasonal demand form the agricultural enterprises in preparation for the sowing campaign. However, the visible increase in sales of construction equipment, in particular through the implementation of used special equipment. Starting from the second quarter, we see that demand is gradually tuned to the harvest - appears interest in harvesting equipment, particularly for combines – both new and used ", - says Lyudmila Zolotaryova.

According to VAB Leasing, along with increasing of short-term funding increases the share of contracts concluded for a period of more, then 10 years - by 51%. In 2011, the trend of prolongation of leasing terms with an increase in credit activity continues - today leasing companies not only shape, but also support the growing demand for its services, summarizes the expert. Cost of lease financing will be reduced - up to 17% in UAH by the end of the year on average at the market. The most attractive terms will be offered through a partnership program with dealers and cooperation with banks. In 2-3 years share of acquired leasing vehicles will reach 7% in the total volume of autosales.

Reference data
VAB Leasing was registered in November 2005. Since October 2006 it is a company in the universal finance VAB Group. VAB Leasing provides services of financial leasing of transport (passenger cars and commercial vehicles), equipment and commercial real estate to corporate and individuals. The chartered fund of VAB Leasing is UAH 35.3 million.