Hello,
We are a start-up company focused on creating financial solutions for solar systems sold to individuals residences, farmers etc.). As the MD of the company, I am trying to better understand the relative pros/cons of various types of financial contracts to sell the solar system (e.g., hire purchase, loan, financial lease, operating lease). We are based in Hyderabad but intend to provide financial solutions to customers in many states including Andhra Pradesh.
What are the all the criteria that we should consider for choosing the type of financial contract (e.g., tax treatment, ease of recoverability of system if customer defaults on payment, being able to charge the customer penalty if he/she cancels the contract etc.). How do these financial contracts compare on these criteria?
I am looking for advice from experts in lease/loan/hire purchase financing who can guide me here.
Thanks for the time. Best regards,
Kumar.
