Friday, September 12, 2008

What is leasing?

Leasing is an effective investment method for companies, especially for those growing ones, through which they can provide medium and long term financing to fulfill their investments. In leasing, the equipment required by a firm is purchased by the leasing company and then leased to the firm, and at the end of the lease period, the title of the equipment is transferred to the firm. Therefore, leasing provides significant advantages to businesses in equipment purchases. Since the equipment is owned by the leasing company through the contract period, long-term financing can be provided for minimum amount of guarantees. Additionally, the fact that operations such as purchases, importations, loadings, letters of credit and transfers are all carried out by the leasing company makes leasing much more advantageous. Plus, the opportunity to buy any equipment based on depreciation makes leasing applicable in any and all areas.

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