Leasing, an option in the face of economic stagnation

The country's economic growth is stagnant and development and investment plans are moving slowly. Faced with this panorama for entrepreneurs and businessmen, the academic from the Universidad Panamericana, Guadalajara headquarters, Marco Antonio Fregoso González, recommends turning to leasing schemes as a form of financing.

easing allows for the purchase of machinery; the cost is paid with fixed monthly instalments for the duration of the contract. Photo: El Informador
easing allows for the purchase of machinery; the cost is paid with fixed monthly instalments for the duration of the contract. Photo: El Informador

"In Mexico, the leasing model has been present since 1981. Today it is found in article 408 of the General Law of Securities and Credit Operations. Its regulation opened the possibility for entrepreneurs and entrepreneurs at the end of the contract to acquire the leased goods and have some tax benefits.

The lesser provision of financing by the Government Development Bank is an opportunity for the lease scheme. Fregoso González points out that entrepreneurs, entrepreneurs, and merchants are unaware of the full package of benefits offered by the various pure leasing schemes.

He also explains that the culture for doing business is based on acquiring goods through direct credits: "It is customary to have a debt in order to feel as if you own the good completely, but there is little analysis of whether this option is the right one for the company and the business model.

In this sense, falling revenues and low growth also represent a need for governments to find other financing options to meet their commitments to society.

However, the academic adds: "The leasing scheme offers opportunities for those who opt for its use, an example is that it does not lose capital for the purchase of a good, fiscally it generates an invoice for the duration of the contract and becomes a fixed expense, in the traditional way it is only an invoice that can be deducted.

When making the fiscal and accounting calculation, financing is the best proposal. In addition, depending on the type of contract, in the end, it can be renewed, acquire the good at a lower cost or participate in the sale of the same at market price and obtain a profit. These programs also work for public and government institutions.

The growth of this leasing scheme has resulted in the creation of Multiple Purpose Financial Societies (Sofomes) in Mexico, which are regulated by the National Banking and Securities Commission (CNBV) and the National Commission for the Protection and Defense of Users of Financial Services (Condusef). The Association of Multiple Purpose Financial Companies in Mexico, A.C. (Asofom) estimates that its share in the country's credit market is 5.6%, representing a capital of more than 520 billion pesos, which operate around 1,400 companies legally.

Avoid financing errors

Marco Antonio Fregoso González, an academic at the Universidad Panamericana, recommends that all entrepreneurs who are looking for financing to expand or start their project analyze the indicated option of a leasing scheme according to their needs:

"It is important when making a contract to see the 'little letters' to know the scope, benefits, and commitments acquired. I also recommend always having a 'plan B' in case of unforeseen events in the development of the project. Leasing, in most cases, allows the contract to be terminated, but there is a penalty that is better than a larger debt.

For Ignacio González, General Manager of Mega, a company from Jalisco founded by Guillermo Romo Romero and specialized in leasing assets for companies, it is important that the businessman knows this alternative that can give tangible benefits to his business, as it allows him access to numerous advantages.

"Leasing is a way of acquiring, through an income, a productive asset and destine the flow of the company to purchases of inventory or use of working capital. In Mexico, it is a little-used instrument in comparison with countries such as the United States or those of the European Union. That is why entrepreneurs in our country should analyze this alternative, as they do not have to distract resources or time in the acquisition or renewal of goods. You leave that to third parties who have developed particular areas of expertise. Likewise, it allows you to access, in a shorter period of time, to the renovation of capital and other goods technology".

Types of leases

Operating: It is the lease of a good or service with monthly payments, this lease is deductible from ISR and VAT, creditable at 100 percent.

Financial: It is the acquisition of goods. A monthly lease is paid, at the end of the contract, you can buy an asset with a residual price, negotiate with a third party at market price or return the good and start a new contract.

Source: El Informador

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