The determinants of financing by leasing

Abstract

The lease or leasing is a simple and flexible technique for the company, a means of competitive funding to bank credit, an original product, allowing all companies especially the smallest among themselves to finance their investments and the expansion of their activity without provided tapping sound of their own funds. Since its opening to the market economy, the Algerian economy is characterized by a need to revive these investments on the one hand, and to renew and upgrade a tool of efficient production especially for SMEs on the other hand. Faced with this situation imposing the search for new forms of financing that fits this context, Leasing found its place as a strategic tool of financing investments, after the publication of order 96/09 of 10 January 1996. Despite the practice of this financial product in Algeria is overdue, but development of this technique is an alternative for growth for small businesses that looking for ways to finance their investments, and at the same time an expansion factor for large companies who have access to another source of financing.