As everybody knows, leasing is a simplified system of credit that works as a rental, but with an option to purchase the asset in the end of payments of installments. Due to low risk, the financing has cost that is low and attractive to customers.

In Brazil this system had "hibernated" for years with a series of unresolved reasons, where the financial institutions found themselves at risk, and be liable for fines or accidents caused by "their customers".

This legal uncertainty is coming to an end, and the disputes were recently resolved by the Supreme Court.

For banks, this form of financing reduces the risk of default, like in financing of a car, keeping on behalf of the institution, which speeds up the process of recovery. The return of leasing will help increase automotive market sales.

by Sérgio Milatias, Editor

Global News Link

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