Surely you have heard on more than one occasion the terms leasing and factoring, but although they may seem two similar concepts are two types of financing for very different companies and cannot occur in the same situations. Today we tell you what are the differences between leasing and factoring.

Leasing

The leasing is a form of financing also known as leasing. Its operation is very simple: a tenant gives all rights of use of a property to a landlord in exchange for a fixed amount of money.

Leasing contract

Leasing contracts can include all types of goods, including real estate, in which case the minimum term of the contract will be ten years and, for other types of goods, this period of time is reduced to two years.

The leasing has an interesting peculiarity and that is that at the end of the lease, the landlord has the option to buy the good that has been enjoying a residual price , that is, the subtraction of the amount that has been paying month to month at the price original of the good. Now that Commission express is a simple process you will be having the best option.

Leasing is a very interesting option for businesses that are starting their activity and cannot make a large investment, for example, computer equipment and printers, there are companies that are dedicated to rent these devices through leasing and some in the fee include the maintenance of them and then you can choose to buy them.

Factoring

The factoring is a form of short – term financing that although is specially designed for large enterprises, SMEs also use some.

In this modality a company looks for a factoring company that is the one that assumes the invoices generated by sales and that it is she who, enocasiones, reclame the debt to the person to whom we have sold our products or services. That is, the person who had a debt with your company would now have it with the factoring company.

As you have seen, the factoring companies assume a great risk and, therefore, there are two types of factoring: without recourse in which the factoring company bears all the risk that the debtor does not pay and, factoring with recourse in that it is the client who would assume the debtor’s default.

Whether you opt for leasing or factoring, you will have to equip your business with the best rate for telephony and Internet for companies, enter our website or call us free at 1496 and we will inform you of all our services.