The Place and Role of Leasing Companies in Project Financing

The project financing is one of the most complicated form of credit. The bank credit and the financial leasing are the instruments of the project financing which are usually distinguished in the doctrine. What about practice, the first one is used much more often, although the choice is conditioned by either the poor knowledge in the applying of leasing or the laws that do not work. This work contains the comparative analysis of expenses on the realization of the project financing through the bank credit and the financial leasing. The research was provided on the data of the large investing projects, realized in the Russian Federation by Russian banks and leasing companies. The great advantage of using leasing compared to the credit for the chosen projects was discovered. The second part of the work presents a regression model that demonstrates the influence of a number of factors on the total costs of investment projects implemented in a leasing form. The results let us give recommendations about appropriateness of the expansion of the banks products and using different instruments including leasing for large investing projects.