Strategy + Execution = IMPACT
Lease is the most preferred option worldwide for outsourcing your equipment lease requirements and as a product is an Off-Balance Sheet item which generally suits Big Corporate commercially as well as operationally. It also facilitates better budgeting as you only pay the monthly rentals and do not incur any capex. In India, we provide diverse equipment lease products with Pan India presence, particularly strong presence in all big metros makes us well positioned to cater to requirement of multi-location organizations. At the end of the lease period we provide an option to corporates to either purchase the equipment or return it back to us.
Salient features/benefits of equipment lease are submitted below :
1.) Tax Benefits: In order to minimize the tax liability of the company, Leasing is best option as the total lease rentals are expense off from the Profit & Loss A/c of the company which helps to minimize the tax liability of the company.
2.) Off Balance Sheet Nature: The Company does not have to capitalize the assets and the corresponding liability in their Books so the Balance Sheet remains unimpaired keeping the Debt Equity ratio intact.
3.) Additional Source of Finance: Leasing facilitates the acquisition of assets without the necessary capital outlay and thus, has a competitive advantage of mobilizing the scarce financial resources of the business enterprise. Companies who have exhausted their limits with banks and other institution also look for leasing as an option.
4.) Flexibility: The lease financing can be upto 100 percent and the lease rental can be structured to accommodate the operational cash flow pattern of the lessee. 5.) Ownership: Option to return / extend / buy back the equipment at mutually agreed terms and conditions for Finance and Operating lease arrangement.