Scientific paper ID 1466 : 2017/3

The majority of transport companies operating in Bulgaria belong to small and medium-sized businesses. In order to develop and survive in the modern economic conditions, they should be skillfully managed. For many companies, the investment in non-current assets is a problem as they do not have sufficient financial resources of their own. At the same time, achieving effective development s that these companies renew and expand their long-term resources. Under conditions of crisis, low returns and limited access to capital markets, for many transport companies the only option to get the necessary means of transport, equipment and other non-current assets is the lease contract.

The purpose of this paper is to clarify the role and importance of the leasing transactions and, in particular, the financial leasing as a financing instrument to support the efficient management of the transport undertaking. The idea is to present the advantages and disadvantages of this type of transactions as well as their accounting and tax treatment in order to outline the benefits of using this instrument in the effective management of a transport company.