What is a financial lease contract?

A financial lease, or leasing contract for friends, is nothing more than a deal between two parts: the one who puts the pasta (the lessor, normally a bank or some leasing company) and the one who wants to use the object of desire (the tenant). The first buys good, but the second uses it, paying fees every month or each quarter, or as they agree. And yes, this is the daily bread in public tenders and moves of the public sector.

The roll is like this: the leasing company is bought, what I know, a fleet of cars, machinery or what it touches, and is rented to the customer. The customer uses it as if it were his, but without releasing all the paste. When the contract ends (usually after a few years, no weekend rentals), the lessee can remain good paying a kind of "last payment" that is usually much less than it would cost new. Plum? Quite, especially if you do not feel like financial muscle to pay everything of one.

And be careful, that leasing is not just to not pay much at the beginning. There are countries where quotas can be described, so, in addition to saving the initial sablazo, you can also scratch the Treasury a bit. The quota you pay usually bring two things inside: one part goes to pay the good (as if you were buying it in installments) and the other part is for interest, because the banks are not an NGO, of course.

Legally, this is regulated by local law and, if we talk about public contracts, throughout the Maraña of Public Procurement Standards. That is, if you get into a mess of these, you have to be clear about what the administration asks for and what can be done or not in your country. It is not a plan to sign blind.

In summary, leasing is a good play if your company needs to equip yourself to comply with public contracts without leaving a kidney at the beginning. It helps you with cash flow and sometimes even gives you a fiscal respite. Of course, before throwing you, choose good, negotiate each clause, and be clear if you will want to buy it at the end. Because then the dramas come and nobody wants that.

So, if you have to mount something fat for a tender and do not want to mortgage to the coffee maker, the financial lease can be your friend. Of course, read the small print and take out the calculator, that nobody gives anything away.