Development Finance

Development finance institutions provide a serious role in providing credit in the form of higher risk loans, equity positions and risk guarantee instruments to private sector investments in developing countries. Provide finance to the private sector for investments that promote development and to help companies to invest, especially in countries with various restrictions on the market.

Advantages

Cash Flow Management

Convert large up-front capital investments into a manageable stream of payments. Lock-in a fixed payment schedule that results in outright ownership of the equipment. Use your new equipment and facilities to generate revenue while you pay for it.

More Flexible Financing Solutions

Leases can provide more flexibility than other forms of financing because the lease agreement can be negotiated to better suit the circumstances of each party. For example, the payment schedule can be negotiated to include escalating payment amounts to better suit cash flow prospects of a start-up business.

Tax Reporting Advantages

A finance lease allows the lessee to treat the lease as an ownership position for tax purposes. This allows the lessee to deduct depreciation expense (a non-cash expense) as well as interest expense (a component of the lessee’s schedule lease payment) for tax purposes.

For more Information Please Visit this Website: www.capitalaccess.net.au