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Discuss the problems of leasing in India?
Leasing has great potential in India. However, leasing in India faces serious handicaps which may mar its growth in future. The following are some of the problems.1. Unhealthy Competition:The market for leasing has not grown with the same pace as the number of lessors. As a result, there is over supply of lessors leading to competitor. With the leasing business becoming more competitive, the margin of profit for lessors has dropped from four to five percent to the present 2.5 to 3 percent. Bank subsidiaries and financial institutions have the competitive edge over the private sector concerns because of cheap source of finance.2. Lack of Qualified Personnel:Leasing requires qualified and experienced people at the helm of its affairs. Leasing is a specialized business and persons constituting its top management should have expertise in accounting, finance, legal and decision areas. In India, the concept of leasing business is of recent one and hence it is difficult to get right man to deal with leasing business. On account of this, operations of leasing business are bound to suffer.3. Tax Considerations:Most people believe that lessees prefer leasing because of the tax benefits it offers. In reality, it only transfers; the benefit i.e. the lessee's tax shelter is lessor's burden. The lease becomes economically viable only when the transfer's effective tax rate is low. In addition, taxes like sales tax, wealth tax, additional tax, surcharge etc. add to the cost of leasing. Thus leasing becomes more expensive form of financing than conventional mode of finance such as hire purchase.4. Stamp Duty:The states treat a leasing transaction as a sale for the purpose of making them eligible to sales tax. On the contrary, for stamp duty, the transaction is treated as a pure lease transaction. Accordingly a heavy stamp duty is levied on lease documents. This adds to the burden of leasing industry.5. Delayed Payment and Bad Debts:The problem of delayed payment of rents and bad debts add to the costs of lease. The lessor does not take into consideration this aspect while fixing the rentals at the time of lease agreement. These problems would disturb prospects of leasing business.
What are the functions of marchant bank?
A merchant bank is a bank which does commercial lending and business banking services, leasing and factoring for example
Is it practical for a business to lease private jets?
I would say only if they can afford to. If the business is a major corporation, then certainly. If the business is small and leasing private jets, there could be some corruption going on behind the scenes.
Sources of business finance?
bank over draft that is short and long term, sub contracting, debentures, issuing share, mortgage, leasing,
What is the leasing companies operating in the Philippines?
First Malayan Leasing and Finance Company is one of the pioneer in the leasing and financing industry in the Philippines.
Tips and knowledge to leasing a business?
When you are leasing a business you should be aware of the extra expense that this will cause. Make sure you don't overextend your new business.
Where can one get leasing on business equipment?
Many companies are currently leasing business equipment rather than purchasing. Some sites that offer the option to lease equipment are Lease Experts and Tiger Leasing.
What is meant by the term commercial leasing?
Commercial leasing is the act of leasing commercial real estate. Commercial real estate is any form of property that is used only for business purposes.
Where can I find more information about leasing business?
You can find more information on several different websites online. Here you can find an extensive definition of what leasing is, and how it is done. http://en.wikipedia.org/wiki/Leasing
What is fleet leasing?
Fleet Leasing is a vehicle belonging to a group, or fleet of vehicles that a business is leasing from a third party leasing company. These vehicles are then used by the employees. Fleet management (usually offered by the leasing company) offers the company advice and recommendations on which vehicles to use for their company as well as payment options.
Advantages of equipment leasing?
There are plenty of different advantages that businesses can gain from equipment leasing, but you still need to know what you are doing if you want to get all of the benefits involved. If you want to know all about the different advantages of leasing, then you need to take a look at what kind of business you run and what kind of benefits leasing certain equipment can bring to that business. The biggest perk to leasing is that it provides you with a flexible option when it comes to your equipment. When you can easily switch out your equipment or get rid of it when your lease runs out, it makes things much easier on you as a business owner. Although leasing will not work for every business, it definitely works for certain businesses that use equipment that is being upgraded on a regular basis.
How much does business vehicle leasing cost?
The price of leasing a business varies depending on the type of vehicle, such as a car, van or truck, the make and model of the car, and the lease length. The prices for leasing a vehicle in the UK start at «£99 for a Vauxhall Corsa, and go up to «£509, for a high end BMW.
Is it best to go with commercial leasing for a small business?
Typically it is best to use a commercial leasing company to find your rental as you will need to find a commercial property for your business. Some realtors do also offer commercial properties.
Does shire leasing have to do with automobiles?
Shire leasing is a business group located in the UK that provides funding for a variety of different uses, such as financing, vehicle solutions, and insurance.
Cutting Company Expenses with the Option of Equipment Leasing?
Whether you are starting a new business or you are operating an existing business, the option of leasing equipment utilized for the services you provide to your customers and clients can be an economically friendly option. Equipment leasing allows you to see how well the products will work for your service options before spending a large amount of company revenue on these products. You will also have the ability of receiving free or low cost repair services when the equipment is not operating properly when leasing these items. Many equipment-leasing dealers offer you the option to purchase the equipment at reduced rates when your lease is completed. You are still able to claim the costs associated with equipment leasing on your business taxes for extra credit when claiming your business expense.
Why is it beneficial for a business to use a car leasing option rather than purchasing a car?
It is beneficial for a business to use a car leasing option rather than purchasing a car because businesses don't tend to keep the same car for a long period of time. Therefore, the business will actually lose money by going into a contract and purchasing a car instead of leasing it for as long as they need it.
Where do I start to be able to lease a business?
When looking at leasing a business, do your homework first! Talk to several different companies before you decide which one to go with. Understand everything that is involved with leasing the business. Learn everything that you can before you make the choice where you want to be. There are a lot of factors that go into this decision.
