He leasing It is an option for those who want to use an asset with purchase prospects. It is highly recommended to know the characteristics of these operations and the leasing benefits in front of renting.
Índice
What is leasing: definition and benefits
He leasing is a lease by which a person assumes the ownership, but not the property, of a good during period let it be signed When the contract expires, you can buy it for residual value, sign a new contract, or return it.
Spanish regulations promote this type of model. There are several options to consider why choose leasing. The main characteristics of leasing that you must take into account are the following:
- The minimum duration of a contract of leasing is two years and the usual thing is that it does not extend more than four. Of course, if the leasing is for real estate, the minimum term of the contract will be ten years. The lower limit is indicated because this type of operation is focused on the purchase of the good. He leasing for companies It therefore becomes an option in the medium term.
- The person who signs the contract assumes the obligations of the car. This involves registration, payment of taxes, inspections, insurance and maintenance operations. In practice, and except for the property, the policyholder assumes all the obligations that imply the possession of a good.
- He residual value has to be fixed obligatorily in all the contracts of leasing. This aspect is essential and must be taken into account because, in practice, it is usually low.
- The leasing can be carried out in several goods, but the most common is that it is in cars and Computer equipment. It is true that this operation is also carried out on machinery and buildings, but it is usually to a lesser extent.
Who is empowered to enter into leasing contracts?
Spanish legislation limits the actors that can carry out leasing contracts. The normal thing is that they can only facilitate this operation banks, savings banks and financial companies. He maker either distributor of an asset can also carry out leasing operations, which is called operating leasing. It must not be forgotten that this type of loan has strict limitations and is regulated.
In practice, the leasing companies They are restricted to prevent fraud by law. The reason is that the objective is that the transmission of the good is effective.
The benefits of leasing over renting
It is important that we point out that there are several leasing benefits with respect to renting. people tend to confuse leasing and renting when, in reality, they are not the same. We indicate the most important ones so that you can make an informed decision. Of course, you should keep in mind that this operation will be more or less beneficial depending on the intention of final use.
low residual value
The lease contracts include the residual value of the asset. As a general rule, this will be lower than in a leasing contract because it will not be the market value. It must be remembered that the legislation encourages the purchase in leasing contracts, so the purchase value will be low.
There are renting contracts that include the possibility of buying the property. What happens is that, as a general principle, the market value of second-hand goods will be taken as a reference.
Inclusion of the purchase option
It is important to say that a leasing contract does not have to include a Purchase option. This assumption, on the other hand, becomes mandatory when we talk about the leasing. This, in practice, allows you to have a good without the need to buy it until some time has passed. Companies that are growing or that are in cash trouble will appreciate this option.
cost savings
The leasing appears as a debt in the company's accounting, that is, as a liability. This is noteworthy because, when preparing the income statement, there will be a saving. It should be noted that leasing operations will not appear on the company's balance sheet as an expense. He leasing for companies It is, therefore, a way of saving.
The inclusion of the fee as an expense or not is an element that is essential in ordinary management. This question is usually essential to balance balance sheets and accounting.
Conclusion
The leasing and renting contracts They are designed for you to make a temporary use of a good What happens is that the medium-term implications are different and so is the purpose. This is a recurring option for the use of computer equipment and cars, assets that have a quick depreciation and whose use may be more interesting than ownership.
The leasing benefits are several, but it is convenient to say that the use what to do is rational. If you know what you want a lease for and sign a contract adapted to the needs of your company, everything will be easier. This form of financing is very advantageous and we recommend that you consider the possibility of using it.