What is leasing?
To date, many people are interested inthe question of what is leasing. From English, this word is translated as "rent". In a broad sense - this is a kind of financial services, which is associated with lending and the acquisition of fixed assets.
What does leasing apply for?
There is a general scheme that better helpsunderstand what leasing is. It looks like this: a leasing company buys some property and passes it to the client. At the same time, the client must pay the initial amount, and then within several years pay the company the money in equal shares for the acquired property. At the same time, the leasing company makes a mark-up on the property, similar to the interest on the loan in the bank. This percentage will be the company's income. After the client has fully paid the required amount, the property passes to his property for free or for a small amount.
The subject of leasing, that is, the transferredproperty can be almost everything - enterprises, buildings, structures, vehicles. However, according to Russian law, it is forbidden to transfer land.
Features of leasing
There are two types of leasing:
- Financial. With this form, the term of the contract is comparable with the useful life of the property. And when the contract ends, the residual value of the property is very close to zero. That is, without any additional payment, the property passes to the client.
- Operating. In this case, the term of the contract is less than the useful life of the property. At the end of the contract, the property is taken away by the leasing company and can be re-leased, or the client buys the property at a residual value. The operating view is inherently a lease.
There are a number of leasing advantages over other payment methods.
- The leasing company requires a smaller package of documents. Therefore, the procedure for approving the transaction is shortened.
- Leasing is long-term. For example, the term of leasing is much longer than the term of the loan.
- The customer has the right to choose the supplier and the delivery time.
- You are protected from unreliable suppliers, since they must necessarily pass the test.
- The interests of the producer and the consumer are coordinated most favorably.
- The leasing system makes it possible to use a flexible, individual approach to the repayment of obligations.
- Small and medium-sized enterprises are much easier to get a lease than a loan.
Despite the multiple advantages, there are also disadvantages:
- The leasing company has a very complex organization, in which there are many participants.
- If the property is obsolete, the payments are still not terminated until the end of the contract.
- The tenant does not benefit from increasing the residual value of the equipment.
Consider, as an example, what is leasingcar. At its core is a car loan. It is convenient for those people who like to change cars, but do not hurry to pay money for them. The leasing company allows the client to ride for money, and if he likes this car, then buy it. The client in this situation can choose all new models of cars, but he should know that for this opportunity he will have to overpay.
It is also necessary to know that when signingleasing agreement, the car purchase and sale contract is not signed. The car will not be the property of the client, but the property of the leasing company. At the same time, the client will use the general power of attorney. But this has its positive aspects. They consist in saving customer time. As the car is registered and a full technical inspection is carried out, the leasing company will be. In case of an accident, the leasing company provides the customer with technical support, a tow truck and a temporary replacement of the car.
There are many positive and negative aspects in leasing issues. And they need to be carefully studied before making a choice in the direction of leasing.