Leasing vs. purchasing physical assets

A one-time purchase diverts large amounts of a company's working capital.  When leasing, you must only make an initial contribution of part of the total cost (10-30%), and in some cases even this is not necessary.  You pay the remaining amount in the form of lease payments over a lengthy period of time.

Leases vs. commercial loans

The initial payments on a lease are due after the acquired property is put into operation, whereas with a loan it is almost impossible to obtain this type of payment deferral.

A bank, as opposed to a leasing company, will most likely require collateral with a value far above the sum of the loan (up to 30%).

A commercial loan has a negative effect on your business's overall financial numbers and can make it difficult to attract investment.  

When comparing the net present value of cash flow for a lease and for a loan, given identical terms and interest rates and even taking inflation into account, a leasing transaction will be 10-15% cheaper.

Lease agreements are long-term (several years), which lowers the amount of each scheduled payment and reduces the financial burden on your company.  

All lease payments, as opposed to loan payments, (when the interest on the funds is not entirely attributed to expenses for tax accounting purposes) reduce the tax basis on which income taxes are calculated.

Leasing vs. renting

Renting always includes an element of risk.  The owner of the rented property can always find a more profitable client and transfer the property to him, which is not possible under a lease agreement.  In addition, any money you have paid to rent the property is gone forever, since by law, a renter must pay the market value when purchasing property he has previously rented.
Leases use an accelerated depreciation ratio, which allows property in good repair that has fully depreciated for accounting purposes to be transferred into ownership at the conclusion of the lease term for a nominal buyout price.

In short

By making it possible to obtain any needed equipment, from office equipment to vehicles, with no additional financial cost or effort, a lease has many undeniable advantages over other ways of acquiring physical assets.

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