Financial Leasing is an effective financing instrument in cases of companies with limited capital base and insufficient credit history. Leasing is an effective instrument to provide medium to long term financing to SMEs in places where there is in place a conducive regulatory environment. It is a useful instrument to replace medium to long term loans for purchases of equipment and technology, BSTDB has been providing credit lines to leasing companies for leasing of investment goods to SMEs, and may consider taking equity positions in leasing companies when deemed appropriate.