Leveraged leasing - For leveraging funding mix in organisations

With the introduction of leveraged leasing the so called brick and motor leasing tens has started  becoming demising or many has started taking interest in leveraged leasing. Levered leasing stands on the non-recourse cash flow lending concept. 

Now now lets check what is leveraged leasing? In this type of leasing concept there is the entry of a third party, who will negative or work as a mediator between lessor and lessee. Earlier or in the traditional lending system there were only two people - lessor and lessee. 

But in this system there are others - names as group of lenders. Lenders are able to help both lessor and less to close the deal within a short span of time. So, in normal condition the lessor provides only about 25% of the total cost of the equipment, but he claims the whole of the ownership benefits, in depreciation, and, where applicable, the investment allowance, for tax purposes. These are passed on to the lessee in the form of rentals lower than they otherwise would have been. The lender, which will be generally a group of lenders,  provides the balance of about 75% as a long term loan and receives regular payments of principal and interest. He gives the transaction its "leverage" or gearing.

Major capital projects have accepted the leveraged leasing concept. The leveraged leasing concept is not a new term to the statutory bodies now a days. This was a new concept for the business people in the middle of 1970’s. It was at that time the government has introduced the concept and it has got relative good response in the market.

Grenke - The leasing specialist

In the IT leasing and equipment leasing industry, Grenke of Australia is the renowned leasing provider for various markets. The company is into leasing for a long time. It is its approach towards customers that brings more business. Trust and good customer service as the corner stone of business progress. The company is following it in always, so is able to benefit from the business in leaps and bounds. 

Today people have been able to differentiate the difference between traditional leasing and leveraged leasing. As merits of leveraged leasing is more, the companies are more interested in this type of leasing system.

Visit - https://www.grenke.com.au/en/about-us.html for knowing more about IT and equipment leasing