The use of leasing as a form of investment financing is due to a number of advantages. It provides companies with the opportunity to evenly distribute investments so that the acquisition of important machinery or equipment does not lead to a critical budget drawdown. Unlike other forms of long-term lease, leasing investments have a more flexible form, according to which payments can be divided into equal tranches.
Investments in leasing are beneficial for private enterprises due to the possibility of maintaining their liquidity. Also, this form of lease agreement provides the following advantages:
low down payment of up to 15% of the total appraised value of the object;
the choice of a flexible scheme for the payment of funds, which is immediately prescribed in the contract;
the amount of payments remains unchanged during the entire period of payments, it is not affected by any economic, political or social factors;
provision by the lessor of additional services, including maintenance and insurance of leased equipment;
clear and transparent accounting of leasing property in accordance with international standards.
Long-term car rental from Avis is one of the effective forms of leasing investment for companies. They can enjoy quality vehicles for their fleet for a long time. After the expiration of the leasing period, the purchase of vehicles is not obligatory. If the client wants to do this, he pays the cost of the car without taking into account the payments already made under the leasing agreement.
Leasing as a form of investment allows Ukrainian enterprises to manage their funds flexibly. This is very important in conditions of economic instability and lack of confidence in the future. Companies do not need to spend large amounts of money on the purchase of cars, they can significantly reduce the cost of leasing the form of rent.
Also, cars on lease provide an opportunity to try different models of equipment, and then buy out only those options that turned out to be the most productive in the process of use. Small tranches, evenly distributed over several years, reduce the financial burden on the company, and therefore reduce the risk of critical costs or even liquidation of the enterprise.
Leasing is an investment that, in the hands of a skilled manager, will contribute to the sustainable development of the company. This is an effective investment tool that allows you to save money and spend it on other activities. With it, you can create a clear budget plan with a long-term perspective.
The sale of a car after leasing provides for payment at market value, excluding previously made payments. Therefore, leasing is called a new form of investment financing, which is chosen by an increasing number of companies in Ukraine. Leasing as an investment is a simple and understandable form, because payments are made on the basis of a clearly approved contract.