Leasing is the right solution for entrepreneurs who are planning to buy a company car. This way, they don’t have to put out cash or apply for a loan. They will not face such a complicated procedure leasing a car in Singapore as in the case of submitting a loan application.
What is leasing?
Leasing consists of financing by the leasing company the purchase of depreciable fixed assets (in this case, a car), intangible assets or land, and then putting them into the use of the lessee. This is done under the conditions specified in the written agreement. Such an agreement regulates specific issues, such as the duration of the contract or the number of installment fees, the so-called leasing installments. Put, by choosing this form of obtaining a car, the buyer pays the payment to the leasing company, which gives him the right to use the car, which he buys, especially for him. Throughout the contract, the leasing company remains the owner of the car. This can be an argument to “no” for those who, however, value the ownership of things more than the right to use it leasing a car in Singapore , because, in the case of credit, the ownership of the car from the beginning belongs to the borrower.
However, banks require the presentation of many documents, including documents confirming the lack of tax arrears, no arrears in the payment of social security contributions, as well as documents regarding the entrepreneur’s revenues in previous periods. For the leasing company, items with high liquidity in turnovers – such as cars or machines – are good security for transactions, limiting the scope of expected additional guarantees. In the case of easy-to-sell items in leasing, simplified procedures are also used, consisting in reducing the number and scope of expected documents, as well as shortening the time to decide to conclude a contract. Therefore, when applying for leasing, we can count on receiving the decision practically immediately. However, it should be remembered that leasing companies also verify their clients and them.