LEASING

Leasing can also be referred to as financial leasing. The ownership of an investment property remains with the leasing company, and it is leased out to someone else. It is an agreement that ensures that the ownership of the investment property passes to the lessee at the end of the contract.

Equipment needs of the business may arise at any time. The business may want to grow its business and increase its profitability. A costly investment has always been a problem for many small businesses. The investment may not be just in property, vehicles or equipment. Some businesses may also need R&D centers for innovative works. In this article, we would like to talk about financial leasing and a few types.

LEASING

WHAT ARE THE LEASING TYPES?

1. FINANCIAL LEASING; It is a type of financing that is leased to the lessee in return for rental payments, and the property in question is purchased by the leasing company. When the contract is over, the property in question is sold to the lessee. The lessee can only show the maturity difference as an expense to his company. It can be accounted for in the company as depreciation on the subject property.

2. OPERATING LEASE; The ownership of the investment in question remains with the leasing company even when the contract is over. It can be rented for short terms, with the economic useful life of the investment property less than 80%. Rental price of the leased property; may not exceed 90% of the sales value.

3. GROSS LEASING; Expenses such as insurance, fees, maintenance, repair and maintenance of the investment property belong to the leasing company.

4. NET LEASING; Expenses such as insurance, fees, maintenance, repair and maintenance of the investment property belong to the lessee at the end of the contract. The net lease contract is divided into single net, double net and triple net leases.

NET LEASING TYPES

A. SINGLE NET LEASING; The tenant pays one of three expense methods.

B. DOUBLE NET LEASING; The tenant pays one of two expense methods.

C. TRIPLE NET LEASING; The tenant pays all three expense methods. It is a type of lease that is generally used for leases over 10 years.

WHAT ARE THE ADVANTAGES OF LEASING?

I. VAT rate is 1%.

II. Contract and paperwork processes are easy.

III. VAT can be paid in instalments.

IV. There are tax advantages.

V. It provides the opportunity to invest without equity capital.

VI. It provides the opportunity to pay fixed rent throughout the rental period.

Accounting such as depreciation and revaluation can be done.

At the end of the contract, it offers the opportunity to buy the investment property with a symbolic number.

EQUIPMENT FINANCE COMPANIES

It is possible to find many large and small companies in the leasing sector. However, the differences between them appear in the billing part. Larger leasing companies seem to have more advantages. Because their own finances, or in other words, their capital, are stronger. Now we would like to introduce you to a few companies that have worked with their strong capital and years of experience.

Crest Capital; They guarantee that the leasing application can be approved on the same day. If you are a new company, we cannot say the same for this, they do not approve. You must have a company history of at least two years to apply. They have the power to cover all costs. They can use maturities between 24 months and 72 months.

National Funding; You can lease up to $150,000 in one day. They don't want a down payment or collateral. It is sufficient that your company activities are at least six months. You can get approval if your FICO credit score is 575 or higher.

Currency, balboa capital, us business funding, cit, etc. companies like these can provide you with equipment financing.