When the time comes to expand your business, funds for implementing plans are not always enough. Not everyone succeeds in accumulating funds for the modernization of equipment or the purchase of new ones. Sometimes there are opportunities for quick money, but this requires large working capital. Situations are very diverse, how many enterprises have so many stories. But the solution in the circumstances may be a loan or leasing. Here the role is purely individual specifics of the enterprise.
Often you can hear about offers from banks a loan to the enterprise, a loan to individual entrepreneurs, agricultural credit is beneficial. But there are individual difficulties with taking a loan or leasing.
Credit - financial means given in installments, whatever words and terms we would call it. There is a benefit for both parties, if you need money, there are those who are ready to give them to you. It remains to choose a bank, as well as a loan rate suitable for the entrepreneur. When taking a loan, free money appears to increase turnover, purchase real estate, machinery, equipment. But insurance of acquired property also becomes mandatory. Also, when taking a loan there is a difficulty in selecting a convenient interest rate. Credit plays the role of a financial stimulus used to transfer large amounts of money from one industry to another. Also, loans stimulate the diversification of production.
Leasing is the same loan only in a different form. Find the equipment you need, buy it for you, insure it and transfer it to use. To purchase, you need to pay a certain percentage of the value of the item, usually from 20 to 49% of its value. When taking a lease, the lessor insures the property, takes into account its depreciation, pays VAT. The lessee receives equipment with which he can work and make a profit. Part of this profit will go to pay off debt. In fact, the equipment is leased, where in the future it is possible to buy out or extend the contract. In some cases, at the end of the contract line, property may be transferred to the lessee without additional surcharges. Also, leasing equipment helps to reduce VAT, as the lessee may not have this product on the balance sheet.
Thus, it is clear that loans play an important role in regulating financial flows in the market. What to choose a loan or leasing for you to decide depending on the situation. Each industry has its own nuances in this regard.
