Leasing benefits in india over hirepurchase?

Answer 1

Leasing enables you to spread the payments for your Adaptive Infrastructure technologies over the useful life of the asset, enabling you to match cost with benefits. You avoid a large up-front payment and have predictable expenses month to month - no surprises - facilitating budget reporting and planning.


Benefits of Leasing

Leasing with HP Financial Services enables you to:

* Reduce total cost of ownership - Industry analysts state that effective leasing strategies can reduce total cost of ownership by 10 - 15 percent. Start with a lease customized to your specific financial and technological needs. Add leased asset tracking services and integrated administrative processes to improve your ability to manage these assets. Finally, eliminate costs associated with disposition.
* Refresh your technology - Benefit from tech refresh options including trade-ins, sale lease-backs, add-ons and upgrades.
* Conserve capital - Leasing means no down payment and no required compensating balances. Furthermore, incidental costs, such as sales taxes and installation charges, can be bundled into the lease rather than paid upfront.
* Preserve existing credit lines - Leasing gives you a new source of credit for present and future needs.
* Finance 100 percent of your solution - Leasing lets you finance the entire cost of your technology acquisition, including equipment, software and soft costs.
* Take advantage of tax regulations - You may be able to either write off monthly payments as an operating expense or capitalize the outlay.*
* Eliminate end-of-useful-life hassles - When you lease, you eliminate end-of-useful-life headaches and costs by simply returning the equipment at the end of the lease term.

* We recommend that you consult with your accountant or tax advisor for complete information on how these alternatives might apply to your specific business situation.

Answer 2

It is an off balance sheet item and hence your balance sheet would not look bloated. Ownership is your option in case oflease.