Tuesday, September 28, 2010

Can U Get A Virus From Brazilian Waxing

ADVANTAGES AND DISADVANTAGES OF LEASING

While it is true that leasing is certainly a useful tool for allow these companies by way of funding short and medium term, like everything else, has its advantages and disadvantages which will try to summarize very briefly:
ADVANTAGES
1) not require an initial payment, so that keeps the business case for use in operational and production cycle, this implies that allows finance 100% of the total value assets acquired.
2) leasing operations are not considered commercial risk operations at the bank because, per se, are automatically backed by an asset.
3) In many countries the total amount of lease payments can be recorded as an expense, thereby decreasing the amount of taxes to be canceled at year end, this occurs in normal conditions more accelerated depreciation for wear and tear over the life of the asset.
4) allows flexibility and expedite the technological upgrading of equipment as to be obsolete or to be worn by their use they can be replaced almost immediately by other equipment purchased by a new lease.
DISADVANTAGES:
1) Leases are usually more expensive than bank loans require a more accelerated depreciation of capital that increased financial costs of companies
2) can not take ownership of the asset until it terminates the lease, when it is perfected transmission
of the above, I think I can conclude that the advantages outweigh the disadvantages in this case, so that means a viable alternative for companies that do not have large capital and need to expand its operational capacity.
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