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Azerbaijani leasing companies want access to preferential financing

Finance Materials 23 November 2018 14:19 (UTC +04:00)

Baku, Azerbaijan, Nov. 23

By Taleh Mursagulov - Trend:

Azerbaijani leasing companies want access to the funds of the Entrepreneurship Development Fund, General Manager of the leasing company Ansar Leasing Hikmat Ibrahimov said Nov. 23.

He said that leasing companies of Azerbaijan should get access to financing.

“The Entrepreneurship Development Fund and the Azerbaijan Mortgage and Credit Guarantee Fund have been created in Azerbaijan for the development of SMEs, and these funds have finances,” Ibrahimov noted. “It would be good if leasing companies had access to these funds.”

He noted that financing of SMEs is a priority for leasing companies.

Thus, leasing companies have specific experience of working with SMEs, he added.

“Leasing companies have experience in assessing agricultural plots, production sites and risk assessment,” Ibrahimov said. “Therefore, using these funds, leasing companies could have been more useful in the development of Azerbaijan’s non-oil sector.”

In addition, Ibrahimov noted that leasing companies can also make certain contribution to the development of agriculture, as well as, based on specific experience, can conduct proper assessment of customers and participate in the formation of competitive environment.

He added that banks aren’t quite interested in financing special or production equipment. Banks usually take real estate as collateral and issue loans on the this basis, he said.

However, leasing companies, from this point of view, have their own experience, and entrepreneurs can take advantage of this, he noted.

The interest rate of leasing companies may be higher, but leasing has its own attractive directions, he said.

“For example, if you are an entrepreneur and you have no collateral, but you want to purchase certain equipment, a leasing company evaluates the risks of the equipment and can give you this without collateral,” he noted. “From this point of view, there is certain advantage over bank loans.”

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