Discover all the benefits of pure leasing and start boosting your company’s growth.
Nowadays, pure leasing is a very common option for both companies and individuals with business activities. Experts often recommend acquiring assets that increase in value, such as real estate, and leasing those that tend to depreciate over time.
What are the advantages of pure leasing?
Pure leasing is a scheme that allows companies and individuals with business activities to acquire various types of productive assets without the need to purchase them. This approach simplifies the acquisition of goods that aid business growth through the payment of a monthly rent for a period agreed upon at the beginning.
In summary, companies can have productive assets whose rents are tax-deductible, which helps to solve operational problems without incurring high acquisition and maintenance costs.
This leads to the second advantage. With a well-structured pure leasing scheme, companies can make significant investments in assets from time to time, maintaining a stable cash flow and avoiding decapitalization, resulting in better management.
The third advantage lies in the flexibility that pure leasing offers. Companies can always have new equipment or renew it periodically, as at the end of the agreement they have the option to return the assets, buy them at their market value, or renew the lease.
How does pure leasing benefit companies?
Let’s take as an example a company that needs vehicles to make product deliveries. The company recognizes that having vehicles represents a competitive advantage in providing its services, so it considers the option of acquiring them through a pure leasing scheme.
The company is certain that having the vehicles will provide a competitive advantage, so it decides to acquire 10 vehicles on a pure leasing plan for a term of 48 months, paying a monthly rent of 2,000 pesos for each vehicle.
Each month, the company will be able to deduct 20,000 pesos (the value of the monthly rent) and use the vehicles to make its product deliveries. By opting for pure leasing, the company avoids decapitalization by not having to make a significant initial investment in the acquisition of the vehicles, allowing it to use that money in other areas of its business.
At the end of the 48 months, the company has saved a significant sum by avoiding depreciation losses and decides to return the vehicles to opt for a new pure lease, this time for electric vehicles that do not require fuel.
During that period, the company experienced growth due to the increase in deliveries and used part of the available cash thanks to pure leasing to boost its development.
