Being also one of the existing business loans on the market, today we will talk about leasing .
I would also like to say that this financial product directly competes with renting, being products that serve the same purpose.
Having said this, we want to present the characteristics and conditions of this financing below.
If you are looking to finance some good for your business through leasing, this article interests you.
Also say that from our website you cannot request this service by not offering it.
If you are looking to hire a leasing, our recommendation is that you go to your bank as it is these entities that usually offer it.
Financial leasing to finance companies and businesses
The first thing to be clear about is that it is a loan.
Now, it is not a normal and current credit that we are used to seeing far from it.
Leasing as such is a loan in which the financial institution acquires an asset and then "rent it to the customer"
Said well despite using it, the company will be in the name of the financial company, having the tenant then a purchase option.
In leasing we can say that two parties are involved
- Lessor: It is the financial entity being the one that buys the good according to the specifications set by its client.
The normal thing is that the client delivers a proforma invoice to the financial company so that it acquires the good according to the specifications set by it.
- Lessee: It is the company that finances the asset through leasing.
Instead of being the one who buys the good, she manages it through the financial company.
In return, he will pay her a fixed monthly fee for the "rental" of the property.
This rent is financial , that is, it generates interest, being the main difference with respect to renting
Characteristics of leasing in financing self-employed and companies
Now that we know better how leasing works, we are going to see its characteristics.
- It is a loan for which it has interest and consequently financial cost.
- In leasing it is mandatory that the client has a purchase option.
That is to say, after a while the client will be able to exercise the purchase option on the good that he has acquired.
- The asset that is acquired through leasing has to be subject to business activity.
- Only companies and freelancers and not individuals may have access to this financing.
- Leasing allows accelerated depreciation of the asset, being by the way the main reason for processing.
From a tax point of view, it is very interesting for the company to be able to amortize the asset in this way.
- The property must be insured in the name of the property owner, in this case the financial one, except in one case, in vehicles.
It is like that for issues of fines, traffic and others.
- Companies can deduct the cost for the fees they pay 100%.
Advantages and conclusion of the leasing
When it comes to financing a purchase and from the point of view of the companies it makes a lot of sense.
And although it is true it has a financial cost in the end all this can be deducted by the company.
With which we can finance the purchase of goods without too much effort and quickly.
Hence, we rate our opinion about this financial product as good.