Leasing is a contract that combines elements of credit and lease. When using a leased item, you are not usually the owner but only have the rights to use it under certain conditions. In return, you pay for this option with a monthly leasing installment. After the contract has expired, you also have the option of buying the item for a much lower price. What else is worth knowing about leasing?
What items can be leased?
We associate leasing mainly with the automotive industry and the possibility of using a new car for a specific monthly installment. Both entrepreneurs and private individuals have such an opportunity. A slightly wider scope of leasing can be distinguished in the case of persons conducting business activity. In this variance, you can lease real estate and items necessary to conduct business. It can be electronic equipment, furniture, necessary software or necessary elements of office or production line equipment.
Why is leasing a profitable solution?
In the case of leasing, we can usually count on a smaller monthly installment than in the case of a traditional loan. What’s more, people conducting business activity can include in the tax deductible expenses numerous expenses related to the use of the subject of the lease. This is particularly profitable for young companies that try to reduce costs. There are two basic types of leasing : financial and operational. In the case of entrepreneurs, the second, mentioned lease offers much more opportunities.
Is leasing possible only for entrepreneurs?
As we have already mentioned, leasing is not reserved exclusively for entrepreneurs. We distinguish consumer leasing for private individuals. The most common subject of such leasing is a car. How does this service work? It’s very simple, the lessor acquires the subject the client is interested in on certain conditions. Then, he leases it to the lessee in exchange for specific monthly installments. At the end of the contract period, the customer returns the item or can buy it completely.