Bank loan or financial leasing - there is no significant difference between these types of lending, since in the first and second cases it is necessary to pay the debt and interest on the use of finance.
Bank lending
A bank loan is a disbursement of cash (lending) to a borrower. The creditor in this case is a bank or a financial organization that professionally carries out monetary transactions on the basis of a license issued. In this case, the subject of crediting is monetary funds.
The repayable nature of a bank loan implies not only the money paid to the bank, but also the interest for using the bank's money. The guarantee and other forms of collateral, which are used in banking practice, act as collateral. Bank lending has a designated purpose.
financial leasing
The main difference between financial leasing and other types is the participation of three persons in a leasing operation. The first person is an organization that produces and sells a certain type of product. The second person is a leasing company that purchases this product for the purpose of reselling it to a third party on certain financial terms. Third party - an organization or individual who is the final consumer of the goods purchased by the lessor.
Thus, financial leasing has the following structure: the leasing company, at the request of the consumer, purchases the goods from the manufacturer and transfers it for lease use to the consumer, who, in turn, undertakes to pay the financial value of this product to the leasing company in a certain time period.
Also, the lease value includes depreciation costs when it comes to property, and the costs incurred by the leasing company for the maintenance and servicing of the goods. The property will be transferred to the user in full possession only if the latter fulfills his financial obligations within the prescribed period. In case of non-compliance or non-fulfillment of the agreed conditions, the property (goods) shall be returned to the leasing company.
What is more profitable?
By acquiring any material assets at the expense of a bank loan, the bank is given an obligation to repay the loan, and the consumer uses the purchase, and most importantly, this thing belongs to him. In the future, the owner of the purchased goods can dispose of them at their own discretion. While using a leasing scheme, the client receives the same thing only upon payment of the necessary contributions. The lessor remains the owner of the thing until the lease value is paid in full.
