Leasing is a commercial contract involving the lessor and the lessee, in which the lessor is obligated to pay for the use of a certain asset owned by the lessee. Vehicles, buildings and real estate are commonly leased assets. Business or industrial equipment is normally leased as well. The lessor is then responsible for paying the agreed-upon amount to the lessee at the end of the lease term. This is known as the rental income.
Leasing is not limited to automobiles. In fact, one can lease a home, buy a car, even get a job by signing up for an auto loan or mortgage. The only limit to leasing is the lessor’s budget. There is really no cap on how many assets you can lease. You can, for example, lease a condo building and use it as your personal residence; use it as a daycare for your kids; or open up a gym on the premises.
The leasing contract, therefore, does not restrict you from earning profits; it restricts you from spending too much. The small business owners’ chance to earn additional money through the sale of extra assets like the car is now available to them. Auto dealers, used car salesmen and car brokers can assist you in finding the right kind of leasing contract for you. They can also guide you in assessing the value of your assets so that you will be able to determine the appropriate amount for its lease. There is, however, a limit to leasing and one might fall into legal trouble if they go over the set figure. Therefore, it is best to have an expert do this kind of work for you so that you will be able to maximize your revenues while minimizing your expenses.