| To run any business is an attractive project but to rise | | | | It combines some of the benefits of leasing with those |
| funds for establishing it require efforts. Most of the | | | | of ownership. This lease allows acquiring full ownership |
| time, we have seen that small business starts without | | | | of the equipment at the end of the lease. The terms |
| any funds. They do not have funds for the latest | | | | and conditions for the acquisition of the equipment |
| equipments and therefore are not able to make it | | | | exist in the agreement itself. |
| even through the first few years of operation. As first | | | | 2) Conditional Sales Lease: It is non- true lease |
| few years of any business are crucial for its owner, | | | | where after paying certain amount to the |
| one can only make through if there is a full proof | | | | manufacturer, lessee acquires the equipment for a |
| business plan with a good cash flow. | | | | shorter duration of its economic life. Certain amount of |
| The best possible way is an equipment leasing finance | | | | interest is also associated with it. The equipment can |
| company. Internet is the tool that is at your disposal | | | | be purchased after the lease ends for paying a |
| every time. There are thousands of companies that | | | | nominal value. |
| provide equipment leasing, used medical equipments | | | | 3) Tax Lease or True Lease: This type is lease |
| and computer equipment leasing. Research well and | | | | is valuable for companies that are vulnerable to |
| shop around to get the best deal. Before plunging into | | | | technological obsolescence, such as computers. It has |
| the deal makes sure that the company you have | | | | lower monthly payments that can be claimed as tax |
| chosen provides financing for your industry. | | | | deductions. At the end of the lease, you can purchase |
| The different types of finance provided by equipment | | | | it, continue the lease or return it to the lesser. |
| leasing finance company are lease, structured finance | | | | 4) Operating Lease: This type of lease allows |
| and loans. In this article we will be dealing with five | | | | the lessee to have the right to use the equipment |
| types of finance leasing and rest of them in part 2 of | | | | without any right to own it. If you want to have the |
| this article:- | | | | ownership at the end of the lease, the terms and risk |
| 1) Capital Lease or Finance Lease: It is a type | | | | involved are much which wouldn't be acceptable. But it |
| of lease that is used for commercial arrangements. | | | | provides greater flexibility as well as cut down the |
| Sometimes referred to as a conditional sales contract. | | | | expenses of the running business. |