Risks of financial leasing

Financial leasing requires a healthy credit environment

Those who say this must not really understand financial leasing. Financial leasing is a unique operating method that achieves financing purposes by separating ownership and use rights, reducing dependence on the credit of the lessee. It can even use technical means to operate independently without considering the credit of the lessee. . Especially when the credit environment is not good, it is a good time for financial leasing to show its strengths. Of course, the improvement of the credit environment will simplify the operation of financial leasing and accelerate the popularity of financial leasing. Financial leasing companies with strong professional capabilities mainly rely on technical means to solve credit problems.

Financial leasing is financial leasing

It is in foreign countries, but not in China. If it is right from a business perspective, it may not be right from an organizational perspective. my country's "Measures for the Administration of Financial Leasing Companies" stipulates that without the approval of the People's Bank of China (note on this site: now the China Banking Regulatory Commission), the words "financial leasing" shall not be included in the names of other companies. This regulation does not have much effect. Financial leasing companies approved by the Ministry of Commerce can be renamed as financial leasing companies.

Financial leasing can accelerate depreciation.

There is no relationship between the lease period and the depreciation period. The former is agreed upon by the parties and the latter. It is stipulated by the state. Although they are reasonably matched in terms of rent calculation and have a tax-saving function, depreciation will never be accelerated unless there is a document that stipulates that the depreciation period can be shortened according to the lease term. According to the current policy, it is not allowed. For leasing, enterprises can also choose the method of rapid depreciation, but the depreciation period cannot be shortened. Only if they adopt financial leasing and enjoy the principle of the shorter of the lease period and the depreciation period of the "Notice on Financial and Tax Issues Concerning Promoting Enterprises' Technological Progress" can it be said to be approved. Financial leasing can accelerate depreciation, and it is the kind of acceleration that shortens the depreciation period.

Financial leasing is a disguised loan

The lessee does not get a penny from the lessor (leaseback). Except), the leasing company always negotiates leasing with the leasing company according to the bank's loan standards. The leasing company treats the leasing as a loan and ignores the risk control in the trade link. When arrears and defaults occur, the property rights are lost. It is easy to lose creditor's rights if you take a loan.

Financial leases can be financed off-balance sheet

Forget the relevant provisions of the "Accounting Standards for Business Enterprises - Leasing" on lease information disclosure. Do not explain financing outside the table. It becomes "off-balance sheet financing", and the lessee has not obtained funds. If it is said that "off-balance sheet financing" is not the same,

Financial leasing can reasonably avoid taxes

Different forms of leasing. According to the regulations of the country, you have to pay different taxes. If you pay less in this tax category, you will pay more in that tax category. Although it is a replica of the allusion of "chasing three times and paying too much in the later period", the tax is different. Changes in time value and payment methods still bring certain benefits to enterprises, but this is not "tax avoidance". If this were the case, the financial leasing industry would have developed by avoiding taxes for others.

Financial leasing is financial business

Financial leasing is essentially a method of service trade. Although financial methods are used in calculating rent, if the leased assets cannot enter the capital market, the leasing company can only do so. If you use your own funds to conduct business, there is no financial connotation. Secondly, even financial leasing companies are engaged in borrowing business rather than lending business. It is precisely because of this misunderstanding that regulatory authorities treat borrowers as lenders. It’s a joke.

You need to set entry thresholds for financial leasing

If you want to do financial leasing of computers or copy machines, you need about 500 million in capital. How many types are there in the country? There are many types of equipment of different sizes in the industry that cannot use financial leasing to sell their own products. If the threshold for financial leasing is raised, it is done to solve the historical burden of leasing companies. The result is that no new financial leasing company has been approved for more than 10 years in more than 20 years, and only 6 of the 16 financial leasing companies have remained in business. Whether a threshold is still needed in the future depends on the Financial Leasing Law. The current draft for comments stipulates that the registered capital threshold is 50 million yuan.

Financial leasing requires strict supervision

Leasing is a marginal industry, and it is unrealistic and unusual for anyone to independently supervise it. The supervision of a single department will become more and more chaotic. Because cross-bank supervision is neither realistic nor legally supported.

The stricter the supervision, the more they dare to use the name of strict supervision to confuse investors. Without strict supervision, there is no opportunity to operate illegally or to make money in the name of strict supervision. Or to be more precise: Don’t let investors irresponsibly give other people’s money to leasing companies, and then use the excuse that leasing companies have strict supervision.

Operating leases and financial leases are two different leasing methods

When the experts did not figure it out, the entire industry was misled. It seems that the traditional leasing business has been conventionally called operating lease. The entire leasing industry operates in chaos, and policies are formulated in chaos. It has been delayed for 26 years and has not made significant progress yet.

The cost of financial leasing is higher than that of loans

Leases and loans are completely different transactions. Due to the misleading of the lessor, the lessee also regards the lease as a loan. When calculating It is always compared with the loan. No one considers how big the opportunity cost is and whether they can get funds from banks under their own conditions. If the cost of unspoken rules, time and material resources are taken into account, the final judgment can be made on who has the higher cost.