Russia

Lease or loan. What is the difference?

 Terms and prices

Leasing

 Acquires property leasing company (lessor), which passes it to the lessee in accordance with Article 2 of the Act of October 29, 1998 № 164-FZ "On the financial rent (leasing)," "for a fee for temporary use." Lessee shall provide the necessary financial and statutory documents, and makes an advance of 20-30% of the cost of the acquired property.

To date, the most common version of financial leasing as a finance lease (leasing) to transfer title to the property to the lessee after the leasing payments. In this case, in accordance with paragraph 5 of Article 15 of the Law № 164-FZ, in the lease agreement specifies the redemption value of the leased asset (Article 28 of the Law № 164-FZ), after the payment, which the lessee becomes the owner of the previously leased asset. Typically, the redemption payment equal to the net book value of the leased asset and subject to the application increases the depreciation rate is a nominal amount.

In leasing, the transferred property is the primary collateral. Also, if the leased asset is a liquid asset, significantly reduces the need for a positive credit history.

Credit

 The property itself becomes a client, after obtaining a bank loan (Art. 819 CC). For the issuance of a loan the bank examines credit history organizations, the value of assets and liabilities, the availability of collateral and collateral. Also, it is still possible that in addition to paying your loan payments, will have to pay an additional fee for maintaining the loan account, an assessment of the pledged property or insurance. In leasing, the transferred property is the key. Also there is no need for a good credit history.

And who is the owner?

Leasing

 For the duration of the contract is the subject of leasing finance lease by the lessee and the lessor is the property. Depending on the type of lease (financial or operating), after payment of all payments under the contract, the leased asset or becomes the property of the lessee, or returns a leasing company. What kind of benefit from leasing, financial or operational, the lessee chooses based on their needs and preferences.

The transfer of ownership to the lessee is only after a certain period of time. It depends on the lease agreement. The most common change of ownership after paying the lease payments.

Credit

 Acquiring the property through a bank loan, the company immediately becomes its owner. However, as a rule, the terms of the loan agreement and the mortgage contract assets, impose no restrictions on smaller opportunities to dispose of the purchased asset, than, in the case if the asset has been taken in the lease. You also can not sell the asset at will, to lease to a third party, as well as a need for insurance. Moreover, the obligation to carry out all tax payments lies with the owner of the property.

All about credits

Before you take something or draw anything on credit, etc. ... need to know what it is, it would be advantageous to you and to the various nuances in the given field ...

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