This is all about leasing. As simply we say that Leasing is the process in which a firm or a person obtain the use of any equipment or machinery for which he must pay installments on the basis of daily, monthly or yearly.
The person who get equipment leasing services is responsible to follow the contract between the two parties such as Lessee or the receiver. For e.g, The relation between the landlord or tenant called tenancy and it will be for a time or period. Are called terms of leasing or terms of equipment leasing.
All the above or similar rules are applying to the personal property as well as the real property. While, same rules applied to a sub-leasing that leased by a leasing receiver or the second party. People will understand sub leasing as simply as leasing agreement between a tenant (in possession) and a sub-tenant. According to the law of sub lease, A further lease of any equipment or property may not allowed. All the leasing process should be written in order to avoid fraud.
The terms of equipment leasing indenture or agreement should be defined for a fix duration or period. The terms should be dissolved after the completion of define period as per indenture. A short term leasing is a tenancy which resigned automatically on the basis of weekly or monthly.
Advantages of Leasing:
? Equipment leasing required; a less capital rather then purchasing.
? Capital of assets, may fluctuate, but leasing capital may not fluctuate.
? Purchasing of equipment may require taxes and other maintenance charges while leased equipment never required tax or other bills.
? In some condition leasing will be the only option. For.e.g if a firm going to shift office. At, a building, where no office is available for sale. Then, must have to take an office on lease.
? While leasing provide more chances to a business to grow faster.
? As, we know that the leasing stimulate the economy by creating new jobs or business.
Disadvantages of Leasing:
? May the lessee shifts all the maintenance cost on the receiver of equipment or tenant.
? Incase, of any downfall in your business, Tenant not allowed to finished the agreement before the time.

? If, your business will be successful then the lessee demand to increase the payment or rent.

After, all leasing will be a practical way to hire brand new equipments. At a highly reliable and short capital rather then own a heavy machinery or equipment. For example, your firm gets a contract of making roads. Which complete in few days. Then which way your firm will go through? 1- Purchasing heavy machinery. 2- Leas the heavy machinery Obviously the idea number one is not practical. Because, your firm has not enough amount to buy such heavy machinery, While the “second” option is more practical, your firm easily hire heavy machinery on leas for a few days or month at a reliable cost.
In this article, all possible information will be gather for the convenience of the reader. After, reading this article choice, is yours whether go with leasing or not.

Equipment leasing


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