We conducted a quick survey on #Leasing a few days ago on our Linkedin page.

A big thank you to the participants.

To the question leasing is the same thing,

- 46% answered "No".

- So much for "Not quite" and,

- only 8% answered "Yes".

‍

If the question seems simple, the answer is not so clear-cut.

And it is natural! It is a subject that creates a lot of confusion where definitions can be complementary or contradictory and often incomplete. We are going to propose you to see more clearly through a series of articles that we will soon compile in awhite paper.

‍

As you can see, anylease is a complete solution to boost your leasing business with the latest SaaS software and recognized business expertise .

1. Leasing and convergence

Let's begin, if you will, by addressing the points of convergence of these funding systems.

Leasing with an option to purchase (LOA) for individuals or Leasing for companies as well as Long Term Rental (LLD) are financial solutions belonging to the Leasing. In French we speak rather of rental financing. That is to say that the final customer is the tenant of the good he uses, contrary to the classic credit which allows him to finance a good of which he is from the purchase owner (whole or part).

2. Why be a tenant

‍

What are the advantages of rental solutions?

‍

They allow to finance a good without being the owner. However, consumer demand today is more focused on use than on ownership (83% according to a recent IPSOS survey).

‍

Moreover, by subscribing to a rental solution, the client obtains a financing agreement more easily since the property will remain the property of the financier, which is in itself a guarantee for the latter.

‍

In the case of a company, leasing will not appear on the balance sheet:

- for LOA and leasing, only an off-balance sheet commitment will appear in the accounting notes

- The LLD simply does not appear.

‍

The company thus improves its financial structure since leasing is not a medium and long term debt like a classic credit. Leasing does not increase the debt ratio. It does not deteriorate the asset / liability ratios either.

‍

Finally, and perhaps we should have started here, the "rental" allows to spread the financial burden of the use of the property over time by a regular payment (often monthly) much more painless than a cash payment. In a large number of cases, the tenant even has the possibility of influencing the amount of his monthly payments by :

- the possible payment of an increased first rent

- the duration of the contract (sometimes modifiable - LLD - or that can be interrupted - LOA, Crédit-Baïl)

- and in some cases by the relative flexibility of the purchase option available to him at the end of the contract(LOA and Leasing only)

‍

This last point already announces our next article!

We will see what differentiates the LLD from the LOA and the Crédit-Bail. And to start with the notion of purchase option.

‍

‍