On July 13th, 2011, the United States Agency for International Development (USAID) signed an agreement with Alliance Group Leasing under which, for the first time in Georgia, a leasing company was granted a Development Credit Authority (DCA) Guarantee issued by the US Government.
The USAID Guarantee will support borrowings of USD 2,500,000 by Alliance Group Leasing so that the company can expand its leasing portfolio in the micro and SME sectors.
The aim of the agreement is to focus on household farming and re-equipment of micro enterprises. As a result, small and medium companies will be able to use alternative form of financing, such as leasing and not be relied on attracting financing only from commercial banks. Leasing represents an accessible, alternative form of financing which enables the companies to re-equip their fixed assets on attractive terms. The financing does not require any additional collateral. Its main advantage is the fact that leasing company assists the clients to find necessary equipments, supports in documentation and logistics, provides flexible payment options, and possibility to renew or change the assets. The leasing legislation also facilitates reduction of tax costs.
The agreement will help Alliance Group Leasing to contribute to the development of micro, small and medium enterprises. The initiative will also facilitate to increase awareness about leasing services in the regions.