Improvement of Leasing Mechanism Application

The main purpose of the paper is to determine the method of estimating the credit risk for the leasing company. To achieve the goal, the following tasks were set: review of the theoretical foundations and regulatory framework of leasing mechanism; identification of current trends in the development of leasing activities in the Russian Federation; studying of classification of risks of the leasing companies and revealing the most significant of them; studying of methodological approaches to risk assessment of a leasing company; development of tools for assessing the risk of default of lessees; comparison of analytical and econometric methods for assessing the solvency of the lessee; making the regression model for assessing the risk of default in practice. The model developed in this study makes it possible to assess the credit risk of a leasing company by first analyzing a potential lessee based on the company's financial statements. This method of assessing the customer has advantages over others because of the transparency and availability of the primary analyzed data. The novelty of the research presented in the paper is the development of a model for assessing a client's solvency, the application of which is possible without collecting additional information about the lessee, based only on the financial statements of the enterprise that are freely available. A regression model was constructed for the dependence of the probability of default of a lessee on the basis of its financial statements, using a logistic function of the form F(z)=1/(1+e^(-z) ). Using the obtained model, we can get the final result equal to 0 or 1, which means, respectively, the not-default and the default of the lessee in the period of 12 months and take this fact into account when making the final decision on the leasing crediting of the enterprise.