What are the advantages of capital rental?
The capital rent has numerous advantages over the supplier's purchasing equipment directly. Leasing protects against changes in technology that could make existing equipment outdated. It also offers a guaranteed fixed payment rate, reduces the impact of inflation, gives the possibility of direct ownership at the end of the lease, and ensures that the company does not have a large amount of capital tied into equipment. Most capital rentals take place between one and five years. This means that the lessee will not be stuck with outdated equipment, because leasing conditions usually allow them to replace old machines with something up -to -date. It is difficult to sell outdated equipment. If an individual or corporate shopping device directly and replaced on the market with an excellent product, the owner will surely arise from the sales.
Inflation reduces the purchasing power of the currency. If the depreciation is combined, the value of the purchased device will be quickly cage over timesuck. Since the lease contract requires the lessee to pay a fixed amount, the impact of inflation will decrease dramatically. The repayment rate during the lease will generally not increase; Changes in inflation will have less impact on society, allowing it to create a budget with greater certainty. Also, if the inflation rate increases during the capital lease, the lessee in the last year pays less than in the first, because the actual value of the currency will be reduced.
When the company buys equipment directly from the supplier, it is necessary to immediately invest a large amount of money. With capital rental, the installments will only be a small percentage of purchasing, the liberation of more capital for the company to spend on other subjects necessary for the company. In other words, capital lease allows organizations to take advantage of the use of expensive equipment without having to break the bank.
The possibility to buy is another important advantage of renting capital. If the leased equipment proved to be very useful for tenants, it may be lessdecide to buy it directly. Most of the rental agreement contains this provision; Companies can use this if they decide to have rented equipment with premium quality and it has a financial and business sense.