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Which is better leasing or loan

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Leasing, in essence, is similar to a loan, but it is not money. Companies and private persons have the opportunity to purchase the lessor under a variety of equipment. During the whole period of validity of this equipment is the property of the leasing company. The cost of credit is basically less than the cost of services of leasing companies.

To arrange for a loan you need to collect a number of documents and make a certain amount of initial deposit. Despite the fact that it takes a long time, there is a huge plus-a low interest rate.

Currently, many leasing companies understand that the demand for their services has grown, so they began to adapt to their clients: reduce interest and prices are discounted. In addition, they offer the opportunity to purchase the equipment at the end of the contract. Advantageous leasing more legal persons, as it is on lease, and therefore part of the costs that affect cost. Leasing costs reduce profit tax.

By cons of leasing include: overpayments of leasing contract (it is larger than the overpayments to the Bank on the loan). If you are overdue in payment, you may be fined. And if the delay prolonged deprivation, there is a chance of down payment and paid fees for leasing.

One of the important advantages of credit is that banks routinely allow your customers to pay off the loan early. And with the leasing company may not always agree, so she included this item in the contract.
Schedule and timing of return payments are sometimes unpredictable.

Another big plus is that buying property in loan, a person or company to instantly become property owners. But at the conclusion of the contract of leasing are different. You will initially have only a right to use the property, the owner is the lessor.

From the above it can be concluded that the Bank loans will not disappear, although leasing took its place in the business and also has its advantages.

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Loan vs lease, consider a specific example that is more advantageous, If you still do not know what is best for you-lease or Loan. In practice, often leasing is advantageous loan. However, each case should be considered separately, Many car enthusiasts and entrepreneurs with buying cars presents a dilemma to take a car on credit or leasing.