Hire and leasing are two types of long-term rental, where you and your company spread the cost over time. Svea Ekonomi owns the object that you and your company use. While renting, the contractor decides whether the customer should be allowed to buy the equipment or whether a new agreement should be written, for the same or new equipment. In case of leasing, your company buys the equipment at a predetermined residual value (usually 3-20%) of the financing amount, as the agreement expires.
When you rent an object, you pay a fixed monthly cost(provided that in the market interest rate is stable ), but do not become the owner of it yourself. The rent is deductible.
In the case of leasing, you pay a fixed fee during the lease period(provided that in the market interest rate is stable) and you know the final value of the iem. After the end of the agreement, you can buy the item. The leasing fee is directly deductible. Leasing is often the cheapest option but it may be the one that works the best for you.The main advantages are that you improve liquidity and have better control over your running costs, while you can finally choose to become the owner of the object. That is you have bear a heavy cost the eary stage and get lower cost when become an ownder. . Technically, leasing acts like an annuity loan; most interest at the beginning, most amortization at the end, and every month with the same rate.
“A typical leasing customer is a company that is expanding and cannot or does not want to borrow for everything they need in their business. Leasing has tax advantages, frees up liquidity and is simple, ”says Christer Barck, leasing expert at Svea Ekonomi.
Contact us if you have any questions about our financing arrangements, and feel free to visit our partner page to read more about our collaborations with other companies and service providers!
MPP is a family-owned company based in south of Sweden. We have been supplying safe and user friendly diesel tanks, fueling stations and storage tanks to the Scandinavian market since 2004.
This site is produced by Pixeltokig