Leasing
What type of product is it?
Leasing is the business equivalent of rental with purchase option. This product is a regular substitute for equipment loans, as it is highly advantageous from a tax point of view. In this way, an entrepreneur seeking this type of financing rents goods equipment to a lender, such as tools, a vehicle, real estate, etc., and can at any time during the contract, but usually at maturity, buy back the asset and become a lender. owner of the goods which were the object of the contract.
What are the special features of this financial product?
- This loan (financing) is not considered a debt in the company's balance sheet, since the equipment is leased.
- If you plan to change or resell the financed property before the end of the term, evaluate other possible financing options, as this type of product may not be suited to your needs.
- This type of financing is not very flexible, because it binds the company by contract and is often non-redeemable before maturity. Generally speaking, the customer cannot terminate it early unless he or she pays heavy penalties.
What are the advantages of this financial product?
- Fixed interest rate
- Since leasing is not considered a debt, you can reduce your debt ratios with your financial institution.
- This product has no impact on working capital or lines of credit
- Leasing costs are tax deductible because they are considered operating expenses rather than long-term debt for tax purposes.
In addition to answering your questions, our SADC experts can help you make a real analysis of your situation. What's more, an analysis of your long-term needs and the determination of an appropriate financial strategy for your business could be developed at the same time.
See the list of different needs on the right. This financial product specifically meets the following needs:
- Improve your working capital / Growth
- Starting a business
- Acquiring equipment
- Robotize / Automate / Improve IT
- Financing a startup
- Improve your company's environmental performance
Don't hesitate to apply to SADC for financing. We'll help you think through your project and bring it to fruition.
YOU WISH...
- Acquiring, merging or taking over a company
- Improve your working capital / Growth
- Starting a business
- Developing a residential / commercial project
- Acquiring equipment
- Export your products or services
- Financing your tax credits
- Buying commercial/industrial property
- Turn around the financial situation
- Take equity out of your business
- Robotize / Automate / Improve IT
- Financing a startup
- Improve your company's environmental performance
- Carrying out a group project
- Strategic planning for your company's development
