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Leasing is a new investment form that benefits entrepreneurs who seek to invest in additional capital assets. Instead of buying the assets in cash, they can approach BSL for a leasing facility. BSL will then purchase the assets selected by the entrepreneurs (lessees), and later collects lease payments, the ownership of the assets retains with BSL while the lessees make use of them.
At the maturity of the lease agreements, three alternatives are normally available to the lessees.
- Extend the contract and enjoy lower lease payments
- Acquire the leased assets from BSL at a special price
- Return the leased assets to BSL
Who may enter a leasing agreement
A juridical personal such as a limited company, a partnership, and a limited partnership.
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Wide Selection of Leased Assets
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Industrial Machine |
Plastic injection machine, printing machine, lathe, metal cutter, textile weaving machine |
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Vehicle |
Automobile, van, truck, trailer |
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Office Equipment |
Computer, copying machine, telephone system |
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Heavy Equipment |
Excavator, backhoe, forklift, truck crane |
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Impressive Leasing Benefits
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Facilitate accounting (off-balance sheet)
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Lease payment is a tax deductible expense
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Capital preservation
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No collateral required
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Inflation is controlled due to fixed lease payments
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Flexible leasing term and conditions
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Long-term financing
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Improve earning report
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Reserve bank facility for other purpose
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Avoid mismatched funding (short term working capital vs.. long-lived asset)
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