The advantage of leasing before the loan: does it exist

Leasing is a type of financial activity.He has his strengths and weaknesses.In economic terms, it combines elements of the loan, lease, investment and construction on the delimitation of the rights of ownership and possession (use) of the object.What are the advantages of leasing?To understand this, it is necessary to examine its strengths and weaknesses.Some advantages of this type of activity are obvious, and other times quite controversial.For example, one of the participants (the lessor), it can be more profitable than the second entity (lessee).

What good is a lease?

look at the main advantages:

  • It allows you to expand your business.
  • Bestows extra income without the distraction of available working capital.
  • Useful for growing businesses.

can say the main advantage of leasing - the savings amount than the loan and the purchase of own funds.

opportunities offered by this investment tool:

  • modernization of the entire production without the distraction of large financial turnover.Financing lessee can reach 90% of the total cost.
  • All payments thereon included in the cost, which can reduce deductions for payment of income tax.This is also an advantage of leasing compared to bank loans.
  • carrying value of the acquired assets is reduced very quickly.It helps to use in this special depreciation factor.When the contract ends, the object is made to the property of the lessee.Then there is no need to depreciate further, putting the balance of the purchase of the new owner of the redemption (residual) value.In other words, it is possible to write off several times faster than the old equipment and buy new equipment.
  • Another advantage of leasing - payments to reimburse VAT in the amount, which is considered of the total, which is more than a conventional purchase.
  • Flexible.You can use a more personal approach to the repayment schedule.Take into account seasonality, the timing of commissioning, start-up of equipment and so on.
  • best price.Applying prolonged economic relations, leasing companies may purchase property at an affordable price.This helps reduce the cost of transactions, reducing costs.
  • wide range of services in the transaction (state registration, coordination of delivery, insurance, transportation, installation and commissioning of the equipment).
  • protection from fraud.All tested, well thought out contractual relationships.


It should be noted that the credit system - a good tool to attract the necessary funds.But to support small business leasing - the best option.Someone, perhaps with this and do not agree.But many see the advantages of leasing before the loan from the standpoint of design:

  • For him, too, required documents, but the process is much faster, can handle fairly quickly.
  • partnership with leasing companies, as a rule, it is easier and more efficient than working with the banks.Any nuance entered into an agreement almost immediately as a flexible system of decision-making.

We have considered not all of the benefits of financial leasing, but only the main ones.Each case should be considered individually.Remember: the skillful use of these tools help many businesses grow and increase their profits.