For the first time since a market economy was established in Albania 15 years ago, Albanian companies now have another financing tool to meet their demand for new production equipment through leasing. This new instrument enables companies to upgrade their technology and become more competitive, they do not need the capital to pay in advance for the machinery or to become eligible for a Bank loan.
Tirana, Dec.15, 2005/- For the first time since a market economy was established in Albania 15 years ago, Albanian companies now have another financing tool to meet their demand for new production equipment through leasing. This new instrument enables companies to upgrade their technology and become more competitive, they do not need the capital to pay in advance for the machinery or to become eligible for a Bank loan. “Companies do not need to have collateral or Bank Guarantees when asking to lease machineries and equipment”- says Gavin Jones, the team-leader of the project “Support for Trade Regulation and Trade Promotion” – but they do need a strong business plan and sound cash-flow.
SAM company in Tirana, who is exporting garments to Italy and France, is the first to benefit from this new leasing facility, and was supported by the ongoing two-year project on “Support for Trade Regulation and Trade Promotion” sponsored by European Commission CARDS Programme – Albania and UNDP Albania. Albanian Export Promotion Agency (ANE) facilitated the process by providing support, information and advice to the company through its Export Development Programme.
Gavin Jones says he expects an immediate increase of export capacities of the Albanian companies, along with an equally important decline of imports, by their substitution through domestic production. This is a crucial economic goal of the EUR 2,2 Million project managed by UNDP-Albania.
Neritan Mullai of the Albanian Export Promotion Agency (ANE) is confident that now many domestic companies can solve one of their main problem. “Financial restrictions hinder faster development of the Albanian companies, who are eager to compete in the global market but suffer limited resources. According to our research, many Albanian companies have the potential to grow exports but often lack the technologies required to compete internationally. ANE can assist them to find the path towards a solid growth in the framework of the Exports Development Program”- a full package of services that ANE has developed to help Albanian companies realise their potential,- according to ANE Director, Mullai.
Mimoza Vojka, CEO of SAM company is extremely happy with the outcome of the assistance she was given by the EU CARDS/UNDP sponsored project. “We are no longer scared by the competitors in the region. Any new machinery or equipment that is necessary can be easily afforded through leasing, without being asked for collaterals or freeze important amounts of money. We feel we can satisfy any customer now, thanks to this solution”- Vojka stresses.
The leasing facility for the production equipment is also expected to add value to many consultancy services as well, by allowing a more efficient planning process to interested companies. Adrian Dabulla of “AC Partners” who assisted SAM company on behalf of ANE says that “leasing can provide to production companies the most recent technologies guaranteeing quality and quantity requirements and making them responsive to any market demand”.
Leasing is not limited by the cost of the machineries and equipment requested, nor by the timeframe that a company might need to make use of them. “If companies prefer to give them back after completing their specific needs of production, they can. If they want to buy these machineries, this can be fixed by a long term leasing contract”- explains Dabulla.
The installation of the first leased machineries in Albania is planned for Dec.26, 2005.
The experts of CARDS/UNDP sponsored project say that a “Practical Guide to Sources of Finance” is being prepared and will be supplied soon to interested Albanian companies in order to have them responding better to their vision and needs.
Albanian parliament passed the Law on Leasing on May 2005. Up to now, leasing was used to sell cars as well as other consumable goods to individuals and companies in Albania.
