These are usually seen as productive assets and leasing helps those working in the sectors of construction and transportation of goods to acquire these assets rather than rent them with the possibility of matching the lease installments with the duration of the construction contract as against the costs of renting them.
Ability to finance both new and used assets
Leasing installments usually lower than the rental rates in the market as it is calculated on the assets cost with very competitive leasing rates
Ability for companies to keep their existing sources of funding untouched and benefit from such facilities to fund their capital and thus maximize on the alignment of funding resources and their use
Possibility of restructuring the lease installments to include a payment at the end of the contract period which can reflect the market value of the machinery at the time. This enables the sale of the asset at the end of the contract without having an effect on the company’s liquidity
Registration of vehicles/machinery in the name of Specialized Leasing Company does not affect the company for classification purposes