Asset Leasing Case Study

What is Asset Leasing? 

An asset is something that can be owned by a business or an individual. It can be tangible or intangible. Asset or equipment leasing is a method using which you can rent equipment or assets from a leasing company instead of purchasing them outright. The asset inventory is an example of a non-physical item that can still be stored and tracked to produce data but cannot be physically held by its owner.

An asset may also be a receivable, which includes items that are received from a customer for services provided and are liabilities both for the business and for the entity retaining them. Several types of assets can be classified as assets, including cash, receivables, payables, and capitalized interest on loans. It is possible to determine the value of each of these categories of assets in a variety of ways depending on its classification.

How does Asset Leasing Work?

 It is a financial arrangement where a company or individual (the lessee) obtains the use of an asset from another party (the lessor) with a promise to return for regular payments over a fixed period. The asset can be anything from a car, machinery, computer equipment, or even real estate.

Here’s how asset leasing typically works:

• The lessee identifies the asset they want to lease and contacts a lessor to inquire about leasing terms and conditions.
• The lessor conducts a credit check to assess the lessee’s creditworthiness and determine the terms of the lease, including the monthly payment, interest rate, and lease period.
• Once the terms are agreed upon, the lessee signs a lease agreement and takes possession of the asset.
• The lessee then makes regular payments to the lessor over the lease term.
• When the lease term ends, the lessee can buy the asset at a pre-decided rate and return it to the lessor. 

Asset leasing benefits businesses or individuals who need to use an asset but do not want to bear the upfront cost of purchasing it outright. Leasing allows for more flexible payment options and can provide tax benefits. However, leasing may be more expensive in the long run than purchasing the asset outright.

Benefits of Asset Leasing

There are numerous benefits associated with opting for an asset leasing investment. Read on to find out what these benefits are. 

• With asset leasing investment, flexible payment options include monthly and quarterly payments. These payments can be tailored as per your financial requirements. 
• Furthermore, there are various tax benefits that come along with leasing an asset. This is due to the fact that the lease payments may come under as a deductible expense. 

Asset Leasing: The Case Study 

At the early age of 21-22, Mr. X starts investing in various traditional financial instruments like mutual funds, gold, and stocks, among others. He did so with the intention of securing a long-term goal for the overall benefit of himself and his family. Right from the beginning, he had a thought process of playing smart and saving his wealth in the most profitable manner. 

He diversified his investments, wherein 50% was allocated to mutual funds, 25% to stocks and 15% to gold, and so on. Eventually, at the age of 35-40, he came across an asset leasing investment opportunity with BHive, a leading provider of financial services. After reviewing the investment opportunity carefully, he decided to invest Rs. 25 Lakhs which promised a monthly payout of 35,000 rupees. 

3-5 years down the line, the asset leasing investment with Bhive provided a regular stream of income, which helped Mr. X to plan for his child’s education expenses without any financial burden. The monthly income that was incurred from the scheme not only helped Mr. X cover the cost of his son’s tuition fee but also other minimal expenses like pocket money and improving the standard of living. Furthermore, the investment in the scheme provided him with a sense of security and stability for his financial future.

Investing in an asset leasing opportunity with Bhive proved to be a wise and smart decision by Mr. X. The investment gave him the platform to diversify his portfolio and earn a financial blanket for his family. Conclusion 

Opting for an asset leasing investment can be a fruitful decision for many. If you wish to learn further more about this investment and how you can implement it to reap the benefits, visit the official Bhive Alts investment platform.