A Lease is an agreement by which one party expresses land, property or an asset to the other party for a specified time which is a contractual based agreement. A car lease is common nowadays. A car lease allows you to drive a new vehicle for a particular time in which you have to take take the loan, you just have to make a small down payment just less than 20% of the car's value, followed by the monthly installments in the term of the lease.
There are two terms associated with the leasing:
The Lessor is the Landlord and Lessee is the Tenant.
- Balanced Cash Outflow: The major advantage of leasing is that instead of paying one single-time payment, you can pay in the terms of monthly installments.
- Quality Assets: The lessee only pays the rental expense. It becomes reasonable for an organization to invest in the good quality assets as they become more affordable.
- Better Usage of capital: It is a better capital investment decision.
- Tax Benefit: Leasing payments are tax-free.
- Better Planning: It helps a cash outflow within a budget.
- No risk of obsolescence: As technology is advancing by leaps and bounds. So, there are higher chances of technology becoming obsolete. Leasing saves the business from the risk of investing in technology that may become outdated soon.
- Low Capital Expenditure: It requires low initial costs.
- Termination rights: It helps in providing flexibility to the business by allowing the lessee to buy the property and terminate the contract.
As there are ample of benefits associated with the leasing so, we need to learn about it in more vast manner. The training courses aim to provide the learners a detailed overview of leasing as a method of finance, and highlighting the benefits of a transaction for both lessor and lessee. These courses identify the training requirements. Moreover, it is a unique and a exciting experience.
