Have you considered contracting an operational lease to expand or renew part of your rental fleet? MAQEL, JLG Industries' exclusive distributor for Spain and Portugal, is offering this service from 2014 with increasing success, hoping to finance an additional 10 million euros this year.
The operational leasing service allows for the financing of machinery by facilitating growth or renewal without initial capital outlay, with the instalments, which are larger than the amortizations of a financial leasing, appearing as an expense with their tax savings. This is an agile option, especially valid in times of uncertainty where liquidity is crucial, such as those we are now experiencing with the COVID-19 health and economic crisis. Angel Jurado from INTERPLATAFORMAS, sums up: "It really is a facility in the sense that it does not take up credit line risks. The price is a little more expensive, but with less risk and commitment in a very complicated situation, we could negotiate a tailor-made solution, reaching a commercial agreement".
The operating lease is a lease based on a contract in which the financial company belonging to the Group delegates the use of the lifting platforms distributed by MAQEL to customers during the months agreed with their monthly payments. At the end of the contract, the customer can choose between returning the machine or exercising the purchase option agreed upon signing the agreement. The purchase option is valid from the start of the contract and can be exercised at any time without any cancellation cost.
It is true that operational leasing offers clear benefits:
- Fixed monthly payments, easily controllable.
- The duration is fixed at 48 or 60 months, and other alternatives can be studied.
- Option to purchase the machine in advance throughout the duration of the agreement
- An off-balance-sheet rent and therefore not recorded as a debt as it is considered an expense.
- Tax savings
- It does not affect bank credit lines as it is 100% financed by the Group.
- No need to provide guarantees or other security.
- Without prior study, with a relationship of trust.
Enrique Benítez of ELEVACIONES ARCHIPIELAGO, concludes: "It gives us facilities for the expansion of our machinery, as well as flexibility in the financing of machinery acquisitions and tax advantages at the level of the profit and loss account".