Allows the business to plan ahead as the business knows what the repayments are Mortgage Buying premises Substantial amount of If payments are not kept money can be raised to buy up then the premises may A loan on premises only premises and perhaps let the be repossessed business grow Interest to be paid back The amount paid each month may go up and Usually paid back over a down with the interest long period of time, e.g. 25 rate (depending on the years type of mortgage the company has) Leasing Similar to renting Leasing a piece of Breakdown cover could be The business will never equipment included in the contract own the equipment or Fixed amount paid each whatever they are leasing month Leasing a new company van Regular updating of equipment may be included A contract is set up with the Leasing office space in a in the contract leasing company for a fixed building period of time Trade credit
Allows the business to plan ahead as the business knows what the repayments are Mortgage A loan on premises only Interest to be paid back Usually paid back over a long period of time, e.g. 25 years Buying premises Substantial amount of money can be raised to buy premises and perhaps let the business grow If payments are not kept up then the premises may be repossessed The amount paid each month may go up and down with the interest rate (depending on the type of mortgage the company has) Leasing Similar to renting Fixed amount paid each month A contract is set up with the leasing company for a fixed period of time Leasing a piece of equipment Leasing a new company van Leasing office space in a building Breakdown cover could be included in the contract Regular updating of equipment may be included in the contract The business will never own the equipment or whatever they are leasing Trade credit