Leasing in Tajikistan: how it works and leasing company websites
What leasing and Islamic leasing are, which leasing companies in Tajikistan have websites, and what to check in a leasing contract before you sign it.
Leasing lets a business obtain machinery, vehicles or equipment without paying their full cost up front. In Tajikistan it is used by entrepreneurs who need special machinery, trucks or production equipment. Here is how leasing works and what the websites of leasing companies offer.
What leasing is
A leasing deal usually involves a lessor (the leasing company), a lessee (the client) and the seller of the asset. The client chooses the asset it needs, the leasing company buys it and transfers it to the client for temporary possession and use. The client operates the asset and makes lease payments according to the schedule set in the contract. At the end of the contract term the asset may pass into the client's ownership, if the terms provide for it.
For a business, leasing is convenient because the machinery starts working and earning money straight away, while the costs are spread over time. Equipment, special machinery and vehicles are the assets most often leased.
Islamic leasing (ijara) is based on the principles of Islamic finance. Instead of paying interest on a loan, the client pays for the use of an asset that belongs to the leasing company, and the terms of the deal must comply with Sharia norms.
Leasing company websites
Global Leasing is a leasing company with an office in Dushanbe. Its website, in Russian and English, presents leasing of special machinery, trucks, passenger vehicles and equipment. The section on the steps of a deal is useful: it explains which documents you will need, why the client's finances are analysed, and how invoices are issued and the insurance premium is paid.
Standard Leasing is a leasing organisation with an office in Dushanbe. It offers leasing of equipment, trucks and special machinery.
DS Leasing specialises in leasing special machinery and equipment for businesses. Its website sets out the leasing terms and has an online application form.
ASR Leasing works in the Islamic leasing format. Its website describes Sharia-compliant leasing of cars, solar panels and special machinery, and applications can also be submitted online.
What to check before signing
A leasing contract is usually signed for a long period, so it is worth studying it before signing and, if necessary, showing it to a lawyer. Pay attention to the following:
- contract terms: the term, the payment schedule, the down payment, the rights and obligations of the parties, and the consequences of late payment and early termination;
- total cost: compare not only the monthly payment but also the total of all payments, commissions and fees over the whole term;
- insurance: who insures the asset and with which insurer, who pays the insurance premium, and what happens if the machinery is damaged or lost;
- transfer of ownership: whether the asset passes to you at the end of the contract, on what terms and with which documents;
- maintenance and repairs: who is responsible for servicing during the lease.
If you choose Islamic leasing, ask exactly how the deal complies with the principles of Islamic finance and how the payments are calculated.
How to compare offers
Offers are easier to compare if you ask each company for a calculation on the same terms: for the same asset, with the same term and down payment. This makes differences in total cost and insurance terms easier to see. All leasing companies' websites are collected in the catalog.tj catalog.
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