What is Leasing?
leasing-01Leasing is a financial instrument in which the property of the leased asset remains with the leasing company while the lessee obtains the right to use the asset by paying lease rentals for the life time of the leasing contract. At the maturity of the leasing contract the ownership of the leased asset is transferred to the lessee at a symbolic cost.
Who Can Lease?
Leasing is open to any individual or corporation that is a legal entity like corporations and self-employed professionals.
Advantages of Leasing
  • 100% financing option: With leasing you can finance the cost of the leased asset without using your company’s working capital.
  • Flexible payment plan: You can plan your leasing terms based on your cash flow on the yield and economic life-span of your investment.
  • Middle term financing: You can choose middle and long-term financing options.
  • Operational convenience: All operational procedures related to the purchase of imported or exported assets are performed by Leasing company on behalf of your name.
  • Exemption from tax and duties: Your leasing contract and all associated collaterals are exempt from taxes and duties.
  • Pay your monthly rentals with your investments: You can pay your monthly rentals with cash generated from your investments.
  • Fixed financing method: Your rental payments remain fixed throughout the lifetime of your leasing agreement and are not effected by economic fluctuations.
  • Transfer of ownership: At the maturity of the leasing contract the ownership of the leased asset will be transferred at a low, symbolic cost.
  • Opportunity for depreciation: You can depreciate and revaluate your leased asset on your balance sheet.