Leasing or financial leasing is a form of long-term financing that consists of the transfer of an asset by a financier to a company (it is widely used to acquire, for example, vehicles) in exchange for a periodic fee, the total amount of which is normally the value of the transferred object plus the derived interests and expenses. Frequently, leasing contracts contemplate the possibility of purchasing the asset once the contract has ended, in exchange for its residual value.
The main advantage is that it allows the company to have the asset without having to make a large initial outlay or sacrifice the production possibilities that the asset allows, while the financing company obtains returns, but, by retaining ownership of the asset until the end of the contract, always has a certain guarantee.
An example of its usefulness would be a person who wants to set up a delivery company; by using this method, they could buy several vans and start obtaining income without having to save for years to buy one by the traditional method, nor do they have to give up the benefits that the vehicles allow them to obtain. Furthermore, in Spain, they enjoy favorable tax treatment.
CC Xunta de Galicia. Información mantida e publicada en Internet pola Xunta de Galicia
