Ayesha Raza2022/03/09 11:32
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A lease is a contractual arrangement calling for the user to pay the owner for use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment is also leased. Broadly put, a lease agreement is a contract between two parties: the lessor and the lessee.

Leasing

Leasing

Lease management software provider Odessa Technologies contends that automated workflow processing accelerates lease processing times, effectively manages related processes, and optimizes workforce efficiencies in any decision making environment. Any workflow process, whether it be for the decision on lease applications or vendor payments (check requests), can be accommodated by an automated workflow system that is built with adequate versatility. In fact, the automation of decision making can fundamentally change the way an organization works, forcing it to confront its bottlenecks and find new ways to create efficiencies.




Workflow model applied traditionally


A standard workflow that can be managed through an automated workflow system is the lease application process. Typically, a lease application traverses through various departments or stages before an approval or rejection decision is made. An application may, for instance, first go to the credit department, then funding, and finally to the legal department before getting approval. Moreover, certain applications (i.e. those which exceed a certain pre-defined dollar limit) may have to make two (or more) stops in the credit department before moving forward. Workflows such as these can be easily modeled in an automated system; further, based on certain user-defined conditional logic (such as a credit limit), the application can even move through different paths within the same workflow.


Extending the workflow concept beyond the traditional


With the advent of sophisticated leasing software applications, it is now possible to automate entire workflow processes within an organization. Workflow automation in the leasing environment lends itself to a high degree of control over the typical processes followed by companies with tight security controls and access rights of users and roles. It also lends itself to planning, based on the data that is maintained by the system. At any given point, managers can, for instance, accurately assess where applications stand, which payments need approval, their stage in the approval process, and any related impact on cash-flow planning, etc. Performance can be appraised based on approval rates, the quality of applications, the number and type of credit checks made, the length of time a particular role/user took to make certain types of decisions, etc. Therefore, an automated workflow system not only allows for greater efficiency, but given its data-richness, also serves as a natural control and planning tool for the entire organization.


Workflow software functionality


Automated workflow software provides businesses with unparalleled flexibility and functionality. Users can easily perform a range of functions such as:


-Replicate real-world workflows for efficient management of front and back office processes


-Receive applications online or through any source desired


-Set up vendor programs, unique to each vendor


-Automate credit decisioning


-Apply pre-determined price matrices


-Automate decisions based on one or many variables

The future of equipment leasing is firmly hand in hand with business development, small, large and everything in between. Equipment leasing is synonymous with possibilities and what business does not benefit from possibilities? Equipment leasing offers businesses: Financial Options, Growth or Expansion Options and Business Potential.


Financial Options – Businesses need financial capital to grow. Capital provides a business with options from loans to investments. Equipment leasing is tax deductible, whereas initial large investments are deductible the first year but only a percentage thereof is after that. Businesses hire accountants and tax experts to help them maximize their capital. The future of equipment leasing is in the financial options they offer to businesses, large and small.


Growth & Expansion Options – Small businesses and the self-employed may find their growth and expansion options limited without the options equipment leasing can provide them. From construction to accounting to medicine, equipment leasing provides a future for both. The rapid growth industry for equipment lessors is matched only by the needs of lessees.


What a company needs more than anything else is capital to invest not only in themselves, but also their future. Equipment leasing keeps the capital in their pockets and helps physicians, engineers, computer specialists and even writers develop their businesses. The future of equipment leasing is tied firmly to the package that is the American Dream.


Business Potential – While financial, growth and expansion options are definitely part of the future of equipment leasing. There is an untapped source that will find its future in equipment leasing. That source is the business potential in the entrepreneur. More and more business entrepreneurs are leaving the wildly hectic corporate world to start their own business.


When you go into business for yourself, there are a lot of trepidations. First and foremost, starting a business can be a risk for the individual and the family. Equipment leasing can help an entrepreneur minimize their risks, plan for a future and deal with unforeseen eventualities.


Equipment leasing can be the difference between achieving a dream and being stuck in a dead-end job. There is a surge in the growth of small business in the country, specializing in personal services from web building to direct marketing to selling homemade clothing. Equipment leasing can make all those possibilities happen and for fraction of the cost it would take to purchase the equipment outright.


Farmers and Other Opportunities – There’s a lot of focus placed on equipment leasing for private physicians, medical practices, construction companies and computer and Internet technologies. Another untapped market that benefits from equipment leasing is farmers that work small and large farm operations. Equipment leasing can keep the small farmer moving on a tractor or helping to rebuild a damaged barn.


Large equipment like tractors, backhoes, ditch witches and scoops are a hefty investment. Farms are a tricky operation and take a lot of backbreaking work and labor investment. When a piece of heavy equipment breaks down, farmers have a choice to repair it or do without. If they can’t affect the repairs themselves or afford them, then it is more than likely they can’t afford to go out and buy a new one. Equipment leasing would provide the farmer not only with the equipment to get the job done, but also to the maintenance support without the huge output of cash.


Leasing equipment provides the lessee with all the following benefits of utilizing the equipment without having to pay the up-front costs or assuming the risk of ownership. A lease is one of the best ways for businesses to stay on top of the development curve. With so many new developments that occur (particularly in the technology areas) equipment leasing is less financially expensive. Running a business means making sound financial decisions that improve the condition and quality of a business. Equipment leasing provides such a benefit along with:


 Minimal Cash Outlay


 Overcoming Budgetary Limitations


 Avoidance of Obsolescence


 Flexibility in Terms and Equipment


 Conservation of the Business’ Working Capital


 Increased Opportunities


 Tax Benefits


 Fast Applications


 100% Financing


The minimal cash outlay allows a business to conserve their own capital. A lease also provides for servicing equipment failures. When managing a large computer room, owning all the computer equipment would place not only the upfront cost of purchasing the equipment, but also maintenance and repair as needed. Businesses that conserve personal business capital and lines of credit can handle the more mundane day-to-day expenses and unexpected events.


Budgetary concerns over new equipment purchases can be circumvented through equipment leasing. Operating budgets tend to be more flexible than a capital budget. The lease terms can be as flexible as required and are often negotiable on an individual basis. Lease terms are usually much longer than a standard bank loan, which makes their payment terms even better.


The ability to upgrade remains one of the best benefits of equipment leasing. Businesses grow; technology changes and the needs of both can change year to year. Equipment leasing allows businesses to benefit from developments on both sides of the aisle. Lease terms may also be structured to handle these changing situations.


Considering this multitude of benefits for equipment leasing, it’s not surprising that more and more businesses are reaching out to lease their equipment rather than purchase it. The benefits of leasing are not limited to the computer industry or to large corporations. Small businesses can benefit even more from equipment leasing than a large corporation may.


Over the past few years, the popularity of car leasing has soared. When you compare leasing with buying a car and suffering the humongous monthly installment fees, leasing provides a better and more viable financial option.


For auto leasing, you need to know the tricks of the trade so that you will not end up paying more than when you directly buy the car. There are car dealers and manufacturers who can give you your money’s worth if you want to go for this option.


You will get a better deal out of the car dealers if you appear knowledgeable about the auto leasing industry, so read up.


‘Auto Leasing Defined’


You would “lease” a car by paying for the costs by which the vehicle depreciates in value. You can calculate depreciation costs by subtracting the car’s value by the time that the lease ends, from its original value. There are cars which depreciate more than other brands. The rule of thumb is, the smaller the amount that your car depreciates, the lesser the costs to lease.


Once you decide to go for leasing over buying a vehicle, you may choose the one with the least depreciation value.


If you decide to go for this option, you need to learn about “lease term”. This is the number of months that the vehicle is leased. Typically, leases last for 24, 36 or 48 months, depending on your contract.


‘Leasing or buying: Which option is kinder to your pocket?’


-Automobile leasing requires you to have a good credit, so if your credit score is low, it is better to go for buying.


You may even be disapproved for a lease if your credit history is not good. Or, at the very least, you will be required to pay higher monthly dues.


-Leasing companies would need to profit from you.


They will invest capital on buying the car, then lease that car out. Just like with any loan, their money shoudl earn interest so you better consider this as well when considering the advantages of buying.


-Make sure that you get the best deal out of car leasing by comparing the monthly costs with the interest rates of your local car dealer.


By making a note and comparing both prices, you would more or less have an idea of which option to go for.


‘Car Leasing Tips’


– When deciding on the model or make of the car that you will lease, choose the Japanese and European cars. These are basically the brands which have lower depreciation rates, as compared to the American vehicles.


You will find out that most luxury cars have the lowest depreciation values. Research, visit a local car dealer in your area or ask friends who are currently leasing cars. They should have some great tips to share with you on how to get the best deal out of leasing cars.


-Leasing a car may put a big dent in yur budget when it comes to car maintenance. You need to make sure that you are a “car-friendly” user when you opt to go for auto leasing.


-Definitely go for leasing if you are the type who wants to own the latest cars in the market. In the long run, leasing will be a better option for you as compared to buying the latest car model then trading in or selling the old one that you have.


-As much as possible, choose a shorter lease period. This is so that you can optimize the warranty of the vehicle.


-Finally, avoid the long-term leases, because the car’s value will decrease by the time the lease ends, and this is mostly when engine problems begin.

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