Established in late 1999, FL is one of the earliest entrants into the Ukrainian leasing sector. FL’s primary product is vehicle leasing/financing for enterprises operating in Ukraine. The company primarily leases cars, light vans, and trucks which are used for monitoring and managing inventory; deliveries; and promotion. The IFC credit line will be used to finance FL's operating lease activities which provide vehicle leasing to commercial enterprises in Ukraine. FL has also received the approval of a comprehensive technical assistance program (TA) with funding of $130,000 from the government of Holland. As FL is still a young enterprise, the technical assistance project will focus on improving/developing several operational areas to help the company sustain its growth. The TA project will involve the following, among other, components: integration of FL’s back office and IT systems; assistance in new product development; and implementation of a leasing oriented IAS accounting system. The benefits of leasing to private enterprises, particularly small and medium enterprises (SMEs), are well documented. In Ukraine’s credit-constrained environment, leasing will provide one of the few viable means of financing investments in assets. This is particularly important in the SME sector where the lack effective financial intermediation is acute. Ultimately, a well-functioning leasing sector would play an important role in supporting the capital investment needs of local enterprises. IFC’s support of FL will help the company expand its leasing activities as well as develop further its internal management and technical systems. IFC’s credit line will provide needed financing to FL in an environment where access to term financing is extremely limited. At the same time, the demand for leasing far outweighs the supply provided by existing leasing companies. In addition, the technical assistance activities associated with the loan will help strengthen various business/operating aspects of the company as noted above.