A contractual agreement between a lessor and a lessee that conveys to the lessee the right to use specific property, owned by the lessor for a definite period of time. In return, the lessee agrees to make periodic payments (rentals) to the lessor.
Vendor Financing Programs give businesses like manufacturers, distributors dealers the opportunity to increase their asset sales without the financial investment required to operate an in-house financing program for their clients.
Factoring, receivables factoring or debtor financing, is when a company buys a debt or invoice from another company. Factoring therefore relieves the first party of a debt for less than the total amount providing them with working capital to continue trading.
Leasing entails low up-front payments, hence easing pressure on company’s cashflows, while allowing the business to utilize the asset and generate income.
Fast transactional process and accessibility to funding, subsequently clients avoid financial burdens.
Lease payments are generally tax deductible just like depreciation charges but are made with pre-tax money. Cash purchases, in contrast, are made with after-tax money.
Depending on your end-of-lease option, just return the asset to the lessor. You will not have the hassle of selling the used asset or run the risks related to residual value and (technical) obsolescence.
Through sale and lease back transactions, hence free cash for working capital requirements.
Payment mechanisms are negotiable and facilitated for startups and SMEs.
