What is leasing?

Recently, such a form of leasing as leasing has become popular. What is it that attracts entrepreneurs in this type of operations? In fact, this type of lease is attractive not only to the borrower, but also to the lender, since it implies the non-investment of capital in the property complex or fixed assets and the subsequent purchase of the lease object.

Thus, on the one hand, the investor acquires equipment that is absolutely unnecessary to him and lends it for temporary use, for which he receives an appropriate fee. Moreover, after a certain period of time, the borrower simply redeems the used property. On the other hand, an entrepreneur who currently does not have temporarily free cash to buy the necessary inventory is now able to use it.

When considering what a leasing is, it is worthwhile to understand that this is first and foremost a successful investment of funds. The lender acquires certain equipment at the request of the customer and passes it to the latter in personal order for a specific period of time, after which the borrower retains the right to fully repurchase this property. Between the parties to the transaction is a written agreement, certified by the signatures of the parties. The agreement specifies the main conditions, as well as the rights and obligations of counterparties.

Answering the question about what such leasing is, it is necessary to clarify the distinctive features. For example, this operation provides for the presence of three participants: an investor ready to provide cash, a lessor or a company from which the necessary property is acquired, and directly by the lessee, in other words - the borrower. Leasing lease form combines several types of activities. The lender, purchasing equipment, carries out investment activities. Then he transfers this inventory to the lessee for temporary use, that is, credit relations come into effect.

Unfortunately, so far many entrepreneurs are not very aware of what a leasing is, and how useful it is for the company's development. Leasing helps to accelerate the sale of specialized products, which is clearly beneficial for the activities of lessors. A investor is successfully investing temporarily free financial resources, because the return of funds is guaranteed, if not in cash, then in material equivalence. The lessee, in the event of a deal, gets a unique opportunity to expand the scope of its activities right now without the need to pay a large sum once .

There is a positive dynamics in the development of this industry, which means that the understanding of what leasing is in the Russian markets is steadily growing. This trend is due to favorable lending conditions and the possibility of applying the method of accelerated depreciation. In addition, depreciation deductions are made in the calculation of lease payments, which can not be done in standard credit relations. In addition, it will take much less time and effort to formalize a lease agreement than in the case of a bank loan.

As practice shows, this service can be useful not only to individual companies and entrepreneurs, but also to individuals. For example, if you have a desire to purchase a car, but you do not have the necessary amount, and consider a loan in the bank as a disadvantageous offer, it is worthwhile to learn in more detail what a car leasing is.