This type of financial operations, such as leasing, is well known to businessmen and owners of their own businesses. This is a great alternative to lending, which is suitable for both large enterprises and small businesses. There are many varieties and types of leasing, but there are two key ones: operational or financial.
Leasing in general is such an activity, as a result of which a company acquires certain property in order to transfer it for rent to another consumer. Depending on whether the client at the end
of the contract will be able to redeem it, and different
types of leasing are allocated
.Operational leasing - the specifics of this type of service
More than 90% of all leasing transactions are related to financial leasing. Companies in this way acquire new equipment, machinery, cars or commercial real estate, seriously reducing tax pressure and reducing assets. This is a way to get away from classical lending schemes, more profitable and convenient.
Operational leasing is a type of lease in which property is transferred for a certain period to the client, but upon termination of the contract is returned to its owner. This option can not be compared with lending, because the consumer never becomes the owner of the property.
Financial and operational leasing are two components of the same type of activity, but they differ significantly in principle of work, and are designed to satisfy different needs. If in the first case this is a way to extend the acquisition of a car or equipment in time for the benefit of yourself, then in the second it is rather an opportunity to use the best new products in each field of technology, without planning to buy them.
Operational leasing costs customers more, because the risk level for the tenant in this case is higher. On the other hand, the consumer does not need to pay full depreciation of property for a short period, he pays only some of it. This option justifies itself well when using expensive property for a short time.
When is operational leasing more appropriate?
The main area of activity of leasing companies in this direction now is the long-term rental of presentable luxury cars, expensive machinery and equipment. One of the goals that operational leasing helps to implement is the image component. This part of the life of the business elite has its own internal rules and regulations, and businessmen spend money on it without regret.
On the other hand, operational leasing is an opportunity to use innovative technologies in production without paying the full cost for them. For example, modern software can also be the object of this type of activity.
And, finally, it is beneficial to use operational leasing in cases where there is a need for a one-time use of certain property. For example, special equipment will be needed to build a new building, but only for 8–9 months, the company will not be engaged in such activities anymore.