More and more companies in Romania that are newly established and do not have enough capital opt for the purchase of goods recovered by financial leasing. Before resorting to this form of financing, it is important to be as well as informed as possible about its advantages, as well as how the contractual relationship with the leasing company is conducted.
What is financial leasing for recovered goods and how does it work?
Financial leasing is an integrated package of financing, insurance and post-sales services for the purchase of goods for long-term use. If an applicant firm fails to comply with its contractual obligations, the goods may be recovered by the leasing company. Subsequently, goods that have not suffered significant damage are reintroduced into the offer at much lower prices, which can be purchased by leasing by another firm.
Most of the recovered goods requested by companies are cars and IT equipment, but some companies, including OTP Leasing Romania, include other types of equipment useful for various sectors of activity, providing transparency and customer support regarding the condition of the goods, precisely so that they can make the best decision for their business.
Here are 5 of the most important advantages of purchasing goods recovered by financial leasing:
1. Reduced price
The prices of goods recovered from the offer of leasing companies are lower than those in the second-hand goods market.
2. Flexibility
Payment of installments can be made monthly, quarterly or seasonally. At the same time, the contractual period is flexible.
Such a contract may be concluded for a minimum period of 1 year (Article 7, Government Ordinance No 51/1997 as amended). Other contractual details, such as the maximum period, the minimum advance, interest or other costs may vary depending on the value of the funded asset and the financial indicators since the signing of the lease.
3. Ownership
After payment of the installments and residual value, the property is owned by the applicant.
4. Reduced bureaucracy
Customers purchasing goods recovered through financial leasing benefit from simplified documentation and a rapid process of approval of the file. Moreover, many leasing companies in Romania provide customers with online systems that can approve a funding application in less than 24 hours.
Also online you can find the necessary documents to request such funding, thus ensuring a minimum level of bureaucracy and reducing travel time for the customers.
5. Other contractual advantages
The customer may request changes to the contractual terms upon request, even after the financial lease is signed. It will of course have to take into account that the changes will be conditional on the fulfillment of conditions such as shortening or extending the lease period, early repayments or disposals of financing contracts.
Another enormous advantage for your business is that there are no special guarantees. In the case of a lease, the guarantee shall be the financed good itself. This means that customers no longer care for mortgages or seizures on non-contracted property.
What are the things you should take into account before signing the contract?
One of the issues to which you should be careful when purchasing goods recovered through financial leasing is the responsibility for the maintenance and maintenance of the contracted goods, and it is up to the applicant to pay the costs of these matters.
It is also important to know that when purchasing recovered goods, the leasing company can ask you for a minimum advance. As a rule, it does not exceed 20% of the total value of the good, and since the prices of such goods are much lower than those on the market, the advantage is still on the customer's side.
In conclusion, firms that do not have sufficient capital and want to purchase goods recovered through financial leasing can obtain a number of advantages, and companies that offer such financing solutions help them to make the best decision for their own business.
