The profitability of a company can be supported by its continuous development, one of the main factors influencing a business's success being the source of financing to which it is directed.

Companies use various sources to access the necessary funds, the most popular being financial leasing contracts, credits or European financing programs.

When it comes to the renewal of the car fleet, companies can opt for the conclusion of car leasing contracts, which are among the most advantageous sources of financing. A car leasing contract provides support for development, while the business capital can be used for other investments.

Financial leasing is a form of financing based on a system of successive payments in the form of monthly installments. They are paid for the use of the goods claimed for a specified period and at the end of the lease period the property is owned by the requesting company.

According to Article 7 of Government Ordinance No 51/1997, a car leasing contract can be concluded for a minimum period of one year. The maximum period, minimum advance, interest or other costs may vary depending on the leasing company, the amount of the property financed or the financial indicators of the applicant company.

What are the advantages of a financial leasing for cars?

• Flexibility

Financial leasing brings a number of benefits to the client, including the flexibility of residual value and payment terms, which may be monthly, quarterly or seasonal.

There is also the possibility to purchase both new and used cars, and financing can be made in both RON and EURO, with a residual value of between 1% and 20%.

In addition, under certain conditions, changes may be made to the level of the car leasing contract, including shortening or extending the lease period, early repayments or dission of financing contracts.

• Low bureaucracy

With process digitization, many leasing companies have adapted and make available to customers online systems through which funding applications can be approved within 24 hours, a significantly shorter time limit than obtaining approval for a bank loan, for example.

Also online you can check the eligibility, the minimum advance amount and the maximum contract period, as well as other useful details for the conclusion of a car lease.

• Ownership

At the end of the contractual period, the applicant company will become the owner of the financed cars, after paying a residual value. Residual value represents a certain percentage of the price of the car, a value not exceeding 20 %.

• Absence of special guarantees

In the case of a bank loan, the approval is influenced by the growth opportunities of the applicant firm, thus requiring additional guarantees depending on the degree of risk estimated by the banking institution. On the other hand, in the case of an auto lease, the guarantee is represented by the asset financed itself. This is an advantage for small, developing companies.

In conclusion, whether we are talking about start-up companies or larger companies, customers in these categories who want to renew their fleet of cars will get a number of advantages if they choose the financing solution through car leasing.