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. Last Updated: 07/27/2016

Leasing for Mid-Size Business in Russia

The law makes car leasing an attractive alternative for corporate customers. However, only foreign or large Russian companies tend to use this method.

Small and medium-size businesses are reluctant to sign up because they do not want to "disclose" their bookkeeping; they cannot provide all the documents needed; and they do not want to be involved in the long complicated procedure of leasing approval. Such companies prefer to purchase vehicles with cash or on credit.

Aside from the above reasons for shying away from leasing, the high requirements of leasing companies bring some untrustworthiness to leasing itself. Leasing companies need to pay more attention to such clients and offer them conditions that will correspond to their demands.

The most clear and effective way to provide sales and to simplify the procedure for such companies is to reduce the list of documents and thus the length of time spent on decision-making. In addition, leasing companies should consider alternative ways of checking a client's data. Such an approach would help to involve these companies in the leasing sphere, and this can only have a positive effect on the development of small and medium-size business.