Flexible renting and basic renting: advantages and differences

Start » Financing » Flexible renting and basic renting: advantages and differences

He renting It is a type of contract furniture rental in which the tenant requires using a furniture by way of temporary without assuming his maintenance nor any risk of its property, in exchange for the payment of a periodic fee.

What is basic renting?

He basic renting responds to a contract on the use of a durable movable asset. The most common thing is that it is the rental of a vehicle, industrial machinery or photocopiers due to its high price in the market.

Regarding your legal nature, the renting contract will depend on the parties to this agreement in which the goals that they pursue with this type of operation.

What are the main characteristics of renting?

  • The rental of furniture can be moved from one place to another while maintaining its integrity.
  •  There is no purchase option at the end of the contract as for example in leasing.
  • This is a rental for two to five years. duration.
  • He tenant It can be an individual or a company, that is, whoever rents the movable property can do so for a personal or professional objective.
  • He renting includes a series of extra services to the rental of the personal property itself, such as its maintenance, repair and insurance to cover possible damages.

What advantages does a rental agreement offer me?

exist multiple advantages with this type of contract, however, the most important are:

  1.  It is neither necessary nor precise get into debt to use the movable property.
  2. They offer a series of additional services for the enjoyment of the property in favor of the tenant and to monthly fixed cost.
  3. The tenant is going to enjoy an asset, then, once that asset is worn out, a new contract in new conditions.
  4. exist tax advantagesFor example, companies and commercial companies will be able deduct to 100% of the amount monthly fees of your renting in the Corporate Tax, as it is considered an expense of your professional activity.
  5. In the case of professionals and freelancers, can deduct the amount of their monthly contribution in the Personal Income Tax Direct Estimation Regime, as long as it is an essential expense for the development of their professional activity.
  6. Improve your liquidity and allows you to benefit from a good without debt.

What parties are involved in a rental contract?

The figures main ones in renting are:

  • seller of goods: is the subject from whom the leasing company acquires an asset.
  • Lessor: leasing company.
  • Tenant: the subject to whom an asset is transferred.
  • Final buyer: the one who, as of the end of the lease contract, acquires the asset for the amount of the residual value.

What is flexible renting?

For his part, the flexible renting eliminates penalties for Anticipated cancelation and meet your requirements in a way agile and fast.

In this type of renting, the lessor will be a financial entity which is responsible for acquiring the good requested by the tenant with the purpose of meet your needs concrete.

What advantages does flexible renting have?

  • Greater profitability: your rental contract will be adapted so that you can adjust costs according to your budget and achieve your goals.
  • There are no penalties: you can return the movable property without penalties, without waiting and with the option to choose another.
  • Duration: the contract time may vary depending on your needs.
  • Modifications: one of the biggest advantages is that you can modify or cancel the contract at any time, no pressure no ties.
  • Economic tranquility: yes shortly after starting a contract your plans they changed, with this type of renting you can do it without worries. This is one of the main differences of the basic renting.

What differences does flexible renting have from basic renting?

There are two big differences between basic renting and flexible renting. The first is the possibility of cancel the contract at any time and the second is the installment amount which you must pay periodically.

How to advise me?

If you are looking for a company with experience the best option is Alter Finance, a leading firm in consultancy and specialized in Trade Finance and Working Capital Finance.

Alter Finance specializes in advising big enterprises already SMEs with financial solutions like the renting.

With Alter Finance you can forget about the difficulties and delays in banks to finance your company that prevent the normal development of your business.

Do you need financing? and know the renting services what it gives you Alter Finance thanks to agreements with various financial entities global level.

Don't waste your time and secure the future of your company!

 

Leave a Comment

en_GBEnglish