Lease Rental Discounting
If you have been renting out your property and have entered into a lease contract with your tenants, you can use the same for obtaining finance in case of financial emergencies.
At Vinayak Associate, we help you cover all your financial requirements through our lease rental discounting services.
What Is Lease Rental Discounting?
Lease rental discounting is a type of secured term loan where you can get funds against your rental receipts. When you enter into a lease agreement with your tenants, they provide you with rental receipts during the course of your lease. Lease rental discounting allows you to use these receipts in the form of collateral for getting a loan.
If you have rented out your commercial property at a fixed rent, this is a good financial instrument for dealing with your financial needs.
The meaning of a car loan is pretty self-explanatory.
How Does Lease Rental Discounting Work?
When you approach us for the loan with all your requirements for the same, we assess your eligibility to qualify for lease rental discounting by focusing on the following major factors:
All these factors along with the amount of rent charged by you play a major role in ascertaining the amount you are eligible to get in the form of a loan and the interest charged on the same.
Once you have your eligibility assessed, you will need to submit the following documents to get your application processed:
Once you have submitted all necessary documents and carried out all the formalities, your application will be processed and you will be given the loan amount shortly.
On getting your loan, you will not need to make separate payments in the form of installments. The rent you receive from your tenants will directly be transferred as your installment for the loan until your lease is over and all the dues are paid.
- The value of your property
- Your credit history (credit score)
- Your monthly revenue
- The legality of your property
- The nature of your rental agreement
- Proof of identity
- Proof of address
- VAT/CST registration certificate
- Partnership deed (if your business is run on a partnership)
- Certificate of incorporation
- Trading and Profit and Loss Account for the last 3 years
- Balance Sheets of the last 3 years
- Bank statement for the last 6 months
- Company’s PAN cards
- List of existing directors of your company
- Registered copy of your rent agreement
- Additional documents (if required)
What Are The Benefits Of Lease Rental Discounting?
Expanding Your Business
Many businesses resort to lease rental discounting for making new investments and expanding their enterprises out of the funds. This, therefore, a good option if you are willing to enter a new line of products, make new corporate investments, or have other expansion ideas in mind.
Streamlined Process
Lease rental discounting is a pretty streamlined process. You do not need to make any extra effort in paying installments as they are automatically paid off from the rent you receive from your tenants. This seamless nature of repayment avoids confusion and inconsistency during your tenure.
No Impact On Cash Flow
One of the major ill-effects of loans is that they often result in a dent in the cash flow when repayments are made. Lease rental discounting has no impact on the cash flow because the repayments are going directly out of the rent received. Now that money is not entering the cash flow, to begin with, it naturally has no impact on it.
No Restriction On Use
When you avail of our lease rental discounting services, there are no restrictions on where you want to use the funds. You can use them to serve an array of your financial requirements. Once you approach us for availing our services, you can rest assured that you will get the most suitable deal and we will ensure speedy processing (and disbursement) of funds. Contact us now to avail of a variety of our financial services.
