Turkish economy has seen a compaction in the second quarter of the year by 1.5 per cent that resulted in the rental phenomena in order to boost the growth in the industry. Within the ownership of Turkey Union of Chambers and Commodity Exchanges (TOBB), the Charter Committee was established. Tezmaksan, the only company providing machine rental services in machine tool industry, announced that financial instruments that save companies from high investment costs are extremely important in the market.
High Cost Saving
Tezmaksan Makine General Manager Hakan Aydoğdu stated that they developed an operational machine rental model similar to car rental model and that they undertook machine breakdown and maintenance free of charge in the system which saved companies from high investment costs. Aydoğdu continued his speech with the emphasis on this new system and mentioned about rental costs can be deducted from tax and as a consequence, the company has created a portfolio valued at 10 million dollars with the system have been implemented during three years. He also added that companies have encountered with $ 10.5 million savings from the investment and $ 2 million from the taxes.
Legal Regulations
Stating that the leasing model should be incorporated in the financial incentive scope in order to be used more widely as a financial instrument, Aydoğdu underlined that there are certain incentives in machinery investments and the most common one is “Investment Incentive Certificate’’ Aydoğdu said that some brands could benefit from the investments but did not have sufficient capital to transfer the resources. Stating that they believe that this problem will be solved with the inclusion of machinery leasing in the scope of incentives, Aydoğdu said, “However, the legal legislation does not allow the required model right now. Companies with investment incentives cannot use their resources when they want to overcome the capital issue and want to invest more. They lose their earned rights. They either have to pay in cash or depend on the leasing alternative. However, we believe that the investments will increase if this exception can be applied in ‘machine rental’ transactions. In particular, export-oriented enterprises tend to rent machinery in order to reduce their expenses and renew their technologies more frequently. With the leasing method, businesses can renew their technology without any cash outflow by realizing the investment they need with much more convenient opportunities.
