Equipment Leasing

Leasing is a contractual arrangement where a lessee (individual or business) pays a lessor (owner or leasing company) for the right to use a particular asset, such as a vehicle or property, for a specified period, usually in exchange for monthly payments.

Buying large machinery and equipment for your business can be an expensive affair. It is not always possible to get easy financing for expensive equipment. This is when you can lease these assets for a particular tenure where you can pay easy monthly rentals for using them. You can also purchase the products at the end of the tenure at a pre-determined value which can be profitable.

There are several benefits to leasing assets for your business. Here are a few:

• Lower cash outflows
• Profitable in terms of depreciating value of assets
• Flexible and hassle-free alternative to ownership
• Efficient during tax management
• Higher equipment for a lesser lease amount
• Elimination of asset disposition costs
• Savings on capital

Equipment Leasing is when you can lease equipment instead of buying it outright. Here is what Chola offers:

• Industrial equipment leasing
• Printing equipment leasing
• Medical equipment leasing
• Packaging equipment leasing

The value of the leased asset or equipment is noted as a fixed asset on the balance sheet. The amount recorded is generally the current value of the minimum lease payments or the fair market value of the leased equipment, whichever is lower.

Leasing equipment is different than renting because it typically covers a longer period, like one year or 18 months. A lease also differs from renting because there are more options than returning the equipment at the end of the contract like buying the product at the end of the leasing tenure at a subsidized rate.

• Ownership proof – proof of identity
• A lease agreement
• Lease deed
• Police verification if needed
• Property/asset tax clearance certificate
• Registration fee receipt
• Rent review