Almost each person knows what is the credit. And here such concept as leasing, is familiar not to all! For this reason most of people lose the remarkable opportunity allowing to create and expand the business. Leasing and the credit have one similarity - it is receiving the desirable now, and return of money then. But as for all the rest, it is necessary to understand, than leasing differs from the credit.
In more detail to deal with what difference between leasing and the credit, it is necessary to review the example based on a car loan and the standard procedure of acquisition of a car in leasing. If the person wants to buy the car on credit, then its actions will be such:
- He will choose the car and its seller.
- Will transfer data to banking institution.
- In bank to it will count the sums of payments, initial contribution, percent, etc.
If the client agrees with all appointed obligations and total amount, then there is an execution of the transaction and transfer of payment to bank. Then the obligatory initial payment which often makes not less than 30% of car cost is made. Also mandatory requirement is registration of a comprehensive insurance autoinsurance, component about 10% of car cost a year.
After that the bank will withdraw the registration certificate and the car under the power of attorney is given. Upon – the bank is considered the owner of the car, and the buyer kind of rented it and pays for use every month. The car will become the property of the borrower only when the loan is completely repaid. With leasing all in a different way.
Features of leasing
Clients who often resort to services of the leasing companies generally are businessmen and owners of business.
Clients quite often have questions, than leasing differs from the credit and that it is more favorable. It should be noted that deliberating over that, leasing or the credit, is the best of all to give preference to the first. Why? Yes at least, because rate % here 10 times less. The sum of initial payment is from 5% of car cost.
It is possible to draw a conclusion that leasing is a magnificent opportunity, had seized which it is possible to expand business and to increase its profitability. Natural persons without effort can buy the expensive car on profitable terms. But anyway everyone for himself decides, what is better: leasing or credit.
What does leasing differ from rent in?
Most the companies rent a certain property, without having own. And sensible businessmen understand that it is much more favorable to lease property in leasing at the lessor. Certainly that leasing and rent have one main similarity: it is necessary to pay a certain sum of money for property.
Both rent, and leasing – a form of the financial relations between legal entities. At such relations the lessor gives to the tenant property in temporary use, raising for it a certain payment. Certainly that there is a logical question in what their differences? It is all about how the property future will be after the contract terminates. When leasing the subject of the transaction has to be surely redeemed, and at rent it comes back in possession of the lessor. In addition, the leasing contract can be signed for very long term that it is hard to say concerning rent.
When there is a requirement of receiving the sum of money for acquisition of any property, it is necessary to choose: leasing, credit or payment by installments. The reasonable person will always give the preference to the organization offering the most favorable terms. It should be noted that many businessmen and owners of business prefer to cooperate with the leasing companies as those, in turn, offer small percent for use of money or the object leased.