Obtaining the fixed assets for a period of time is what leasing is all about. There is hiring leasing and finance leasing. While we talk about broadcast or audio visual equipment leasing we would usually refer to hiring leasing. Talking about leasing it is important to know that lessee is the person who takes the equipment or any other property into lease and lessor is the person who is into the business of selling or leasing of the equipment.
There could be various reasons why one can go for audio visual equipment leasing. The prime among them could be related to the asset management. When you hire equipment for a specific time frame, the equipment stays with you for that time at fixed payments. The risks of equipment ownership is assumed and taken care of. When we are talking about equipment finance leasing it gives the lessee the purchasing power to acquire additional equipment. The most important reason why people go for leasing is there is no down-payment required for getting the equipments under lease. One of the other major advantages of lease is that it provides you with complete finance and favorable terms and conditions than the traditional loaning systems. With leasing you are also entitled for some major tax benefits. Tax benefits could be grabbed by you when you are leasing the equipments because, leasing would be deemed as periodic rental expense which would be deduced from the tax that you are supposed to pay. But if what is being shown as lease is not a lease but provisional sale or repayment of the installment, you are not entitled for the tax benefits. Hence, it is important to understand the difference between leasing the equipment and purchasing it.
Best of the best equipments and offers are made at minimal expenditure. This is the downright benefit of leasing. With equipment leasing you become immune to inflation. The amount which you have to pay to the lessor is fixed and will not change as the market changes.
But one has to be very cautious with the wear and tear. This has been one of the major concerns in the leasing because when you take any equipment for lease, you are responsible for the wear and tear of the equipment. So you should question the lessor about the prior maintenance of the equipment. You should also read the leasing deal document watchfully. Evaluate the points like the monthly budget you can afford and if the equipment will last till the lease term or you would have to make the repairs in the middle of the lease period, out of your own pocket? If you are looking for a super cheap deal then prefer the short term period offers. Do your own R&D before leasing any equipment. There are online leasing firms online and offline. Research properly, evaluate the entire thing on the basis of the parameters discussed above and go for it.
Audio visual equipment leasing caters to the immediate business requirements of yours. What more could one ask for?
For more info please refer Audio Visual Equipment
Article from articlesbase.com
More Tax Lease Articles