mifs leasin n h.p

8/9/2019 mifs leasin n h.p

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Abhinav pandey

Sourav maity

Shubhra jha

pankaj kumar

Manoj sharma

Neelava


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It is also called closed ended leasing.

It is an agreement for hire, with an option to purchase.

After all the payments have been made, the business customer

becomes the owner of the equipment.

The business customer is normally responsible for maintenanceof the equipment.


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To be valid, HP agreements must be in writing and signed by both partparties. They must clearly set out the following information in a print that

all can read without effort:

1) A clear description of the goods

1) The cash price for the goods

2) The HP price, i.e., the total sum that must be paid to hire and thenpurchase the goods

3)

The deposit

4) The monthly installments

5) The right of the hirer to terminate the contract when he feels likedoing so with a valid reason.


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1) If the hirer fails to pay any particular instalment.

2) The owner can terminate the contract and take away the goods.

3) The ownership continues to remain with the owner.


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1. Normal trading profit

2. Finance charge

3. Recovery of cost of goods/assets


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A hire purchase allows a person to buy an item , such as a house, over

a long period of time. With such an agreement, the buyer can enjoy

his property while making payments. The buyer also has the right to

sell the property and allow the new purchaser possession of his house


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1) Generally, a person must be at least 18 years of age to enter into

a valid hire purchase.

2) There is no upper age limit to incurring such a purchaseagreement.

3) Each person should carefully consider his financial position

before incurring any type of hire purchase.


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A lease is an agreement allowing one party to use anothers property,

plant , or equipment for a stated period of time in exchange forconsideration.

A lease agreement involves at least two parties a lessor (such as a

bank), who owns the property, and a lessee, who uses the property.


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Long-term, non-cancellable lease contracts are known as financial leases.

Covers the whole useful life of the of assets .

Lease rents are lower

The lease agreement is irrevocable.


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Lease period is for short time period generally less then useful life of

asset.

This lease agreement gives to the lessee only a limited right to use theasset.

The lease agreement is revocable at a short notice.

Mines, Computers hardware, trucks and automobiles are found

suitable for operating lease because the rate of obsolescence is veryhigh in this kind of assets.


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The owner of an asset sells the asset to a party (the buyer),who in

turn leases back the same asset to the owner in consideration of lease

rentals.

Under this arrangement, the assets are not physically exchanged but

it all happens in records only. This is nothing but a paper transaction.

Transaction is suitable for those assets, which are not subjected

Depreciation but appreciation, say land.

Equipment Leasing requires that the equipment be purchased within

90 days


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Under leveraged leasing arrangement, a third party is involved beside

lessor and lessee.


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Under direct leasing, a firm acquires the right to use an asset from the

manufacturer directly.

The ownership of the asset leased out remains with the manufactureritself.

The major types of direct lessor include manufacturers, finance

companies,independent lease companies, special purpose leasing

companies etc.


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1) You do not need large sums of cash to acquire equipment.

2) The rental you pay is fixed,it easier to draw up a budget and

project your cash flow.

3) By leasing, the responsibility of maintaining and servicing the

equipment falls on the person renting the equipment to you.

4) You can always rent the latest and most advanced equipmentor assets as and when you need them.


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Is Equipment Leasing The Right Choice?


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When Is Hire Purchase A Better Option?

When Is Leasing A Good Option?

Is Finance Lease a " Sale " for the purposes of Sales Tax ?

Is Hire Purchase a Sale for the purposes of Sales Tax ?

Where to Find a Business Equipment Lease Company?


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mifs leasin n h.p

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