Leasing. Definition and advantages

The foreign word "leasing" has long been included in oura life. Today it is quite a popular service. However, not all of us know the very meaning of the word "leasing". The definition of this term hides an entire financial system. However, despite all the apparent complexity, the meaning of this word is quite simple, and it is fixed in the Law of the Russian Federation No. 164. Following it, leasing (the definition is confirmed) is a type of investment activity for the purchase and transfer of property, based on a special agreement. According to him, an individual or a legal entity is the lessee of this property for a fixed fee for a certain period and with the right to buy it.

Of course, nothing is complicated in this, exceptofficial meaning of this word. There are many other options for explaining the word "leasing". Definition and meaning of them, however, always comes down to one - to investing certain capital for the acquisition of property, which will subsequently be leased. Leasing is always side by side with loans, leases and various investments. Its mechanism itself includes three sides: an investor, a landlord and a tenant. Leasing, the definition of which we now know, has its merits, and they can be considered. Experts say that thanks to this service:

1. The problem associated with liquidity of funds is being softened.
2. The tenant gets the opportunity not only to increase his own production, but also to save both money and time.
3. There is no need to attract borrowed capital into production.

All participants in leasing cancross each other: the investor, by virtue of his duties, offers a loan to the lessor. The latter is not only a borrower. It represents also the owner of the property being acquired and handed over, which is transferred to the lessee in the form of a contract.

Leasing services have some advantages:

• the number of buyers from companies producing machinery and equipment increases several times;
• thanks to leasing it is possible to save money on the purchase of expensive equipment from the manufacturer;
• obtaining certain benefits through leasing;
• the lessor does not need to pay the whole amount for the equipment at once, so he can easily direct the remaining funds to other production branches.

There are several options for the provision of such a service:

1. Financial leasing is a transaction that involvesreturn all funds that the lessor has spent, during the duration of the contract. In addition, amortization payments are often accrued at this time, and by the end of the contract, their amount can reach 100%.
2. Return leasing is an option in which the owner sells his equipment to a company and then draws up a lease contract for his own equipment.
3. Leverage. It is mainly used for the implementation of the most expensive projects, as it involves financing through several different channels.
4. Subleasing. The variant of the service, which is carried out with the help of several intermediaries.
5. Operative leasing. Characterized by the fact that there is an incomplete depreciation of equipment with the condition that the lessee is required to monitor the integrity of the equipment.

According to the definition of leasing, it impliesunder a certain financial costs. They are called leasing payments - this is the amount that the lessee must provide for the services received. Let's try to consider the main characteristics of leasing payments. Their composition, as a rule, includes:

1. Amortization of property for the entire period during which the contract is in force.
2. Paid compensation to the lessor in calculating the funds used.
3. Commission.
4. Payment for additional services.
5. The value of the property itself, but only if the contract specifies the point of purchase.

Thus, leasing is profitable and easy for everyone.