What Is Lease Rental Discounting
- Ved Dev
- February 8, 2023
- 8:40 am
- No Comments
Lease Rent Discounting is a financing tool that allows businesses to unlock additional funds tied up in their existing leases. By discounting the lease payments, companies receive immediate cash flow and can benefit from improved financials while enjoying greater flexibility in how they use their rental income.
Lease rentals discounting provides an excellent option for companies who want the liquidity offered by access to extra capital without having to deal with complex lending or loan procedures or those who wish to increase their working capital to grow operations.
Features of lease rental discounting include:
- Easy access to capital
- Quicker turnaround times than traditional loans
- Tax benefits available in some cases
- Flexibility in how the funds can be used
- Reduced risk compared to traditional lending
Purpose of lease rental discounting
The primary purpose of lease rental discounting is to allow businesses to access additional capital tied up in existing leases and use this for any business purpose. This is often used to fund business expansion or for any other purpose for which the business may need additional capital. It can also reduce debt and improve cash flow and overall financial health.
Lease rental discounting is an excellent alternative to other forms of financing and can help businesses unlock capital without taking on new debt or dealing with the complexities of traditional lending. It is also a great way to access additional working capital without altering existing leases. For business owners, lease rental discounting provides a great way to unlock immediate capital for their businesses.
