What is financial leasing?
Leasing is an action in which we rent equipment from a leasing company under certain terms and, at the end of the predefined period, the equipment is available for acquisition. In financial leasing, the leasing period extends between 45-80 months. The equipment is owned by the lessee (the party acquiring the equipment) and it is responsible for all of the current expenses relating thereto. Financial leasing is actually an installment plan for acquiring equipment over a specific period after which the lessee may acquire the equipment at a symbolic price.
Who is it for?
Financial leasing is suitable for financing various vehicles, industrial production equipment, computers, communication systems, air conditioning systems, office furniture and more. Liberal professionals, for example, may perform leasehold improvements, furnish and accessorize their offices while utilizing leasing as the preferred financing option.
How does it work?
Under the leasing method, the equipment or vehicle are acquired by the leasing company, based on customer specifications. It is later rented to the customer under an agreement for a period determined upon his request. At the end of the leasing period, the vehicle or equipment is acquired for a symbolic price. An optimal leasing period should be determined together with a CPA in order to enable the utilization of tax advantages.
The Benleumi offers a variety of financing options with attractive terms:
- Unlinked, fixed interest NIS
- Unlinked, Prime based interest, NIS
- CPI linked