What are the methods of enterprise leasing?

Enterprise leasing methods include operating leases and financial leases

Leasing refers to an agreement in which the lessor transfers the right to use assets to the lessee within an agreed period of time in order to obtain rent.

1. An operating lease is an "incomplete payment" lease arranged to meet the lessee's temporary or seasonal use of assets. It

An operating lease is a lease in the pure, traditional sense. The lessee leases assets only to meet short-term, temporary or seasonal operational needs and has no intention of acquiring additional assets. Operating leases generally refer to all other forms of leasing other than financial leases. A lease whose remaining economic life of the leased asset is less than 25% of its estimated economic life on the lease commencement date is also regarded as an operating lease, regardless of whether it meets other conditions for a finance lease.

2. Financial leasing means that the lessor, based on the lessee’s specific requirements for the leased items and the selection of the supplier, invests in purchasing the leased items from the supplier and leases them to the lessee. The rent is paid to the lessor in installments. During the lease period, the ownership of the leased object belongs to the lessor, and the lessee has the right to use the leased object. After the lease term expires, the rent has been paid and the lessee has fulfilled all its obligations in accordance with the provisions of the financial lease contract, if there is no agreement on the ownership of the leased object or the agreement is unclear, a supplement can be agreed; if a supplementary agreement cannot be reached, the ownership of the leased object shall be determined in accordance with the relevant provisions of the contract or If the transaction custom is confirmed but still cannot be determined, the ownership of the leased object belongs to the lessor.

Financial leasing is a new financial industry that integrates financing and property financing, trade and technological updates. Due to its combination of financing and property financing, the leasing company can recycle and dispose of the leased property when problems arise. Therefore, the requirements for corporate credit and guarantees are not high when handling financing, so it is very suitable for small and medium-sized enterprise financing.

Simple financial lease

Simple financial lease means that the lessee selects the leased items to be purchased, and the lessor leases the leased items to the lessee after assessing the risks of the leased project. During the entire lease period, the lessee does not own the property but has the right to use it and is responsible for repairs and maintenance of the leased property. The lessor is not responsible for the quality of the leased items, and the depreciation of the equipment is on the lessee's side.

Leaseback financial leasing

Leaseback leasing means that the owner of the equipment first sells the equipment to the lessor at the market price, and then leases back the original equipment in the form of a lease. way. The advantages of leaseback leasing are: first, the lessee not only has the right to use the original equipment, but also obtains a sum of funds; second, since the ownership does not belong to the lessee, after the lease expires, he can decide to renew or stop the lease according to needs, thus increasing the The lessee's adaptability to the market; third, after the leaseback, the right of use has not changed. The lessee's equipment operators, maintenance personnel and technical management personnel are familiar with the equipment, which can save time and training costs. Equipment owners can use most of the funds from the sale of equipment for other investments, put the funds to use, and use a small part to pay rent. Leaseback leasing business is mainly used for used equipment.

Leveraged financial leasing

Leveraged leasing is similar to syndicated loans. It is a financial leasing with tax benefits that specializes in large-scale leasing projects. It is mainly led by a leasing company as the backbone. Company, financing a very large leasing project. First, establish an operating organization that is separate from the main body of the leasing company - a fund management company specifically established for this project to provide a total project amount of more than 20 RMB. The remaining sources of funds are mainly to absorb idle hot money from banks and society, and use 100 RMB to enjoy the benefits of low tax "Use two to win eight" leverage method to obtain huge funds for leasing projects. The rest of the practices are basically the same as financial leasing, except that the complexity of the contract increases due to the wide range of aspects involved. Because it enjoys tax benefits, standardized operations, good comprehensive benefits, safe rental recovery, and low costs, it is generally used for financial leasing of aircraft, ships, communication equipment, and large complete sets of equipment.

Entrusted financial leasing

One way is that a person who owns funds or equipment entrusts a non-bank financial institution to engage in financial leasing. The first lessor is also the principal, and the second lessor is also the principal. is a trustee.

A major feature of this kind of entrusted leasing is that it allows companies that do not have the right to lease operations to "borrow" the right to operate. E-commerce leasing relies on entrusted leasing as a business leasing platform.

The second method is that the lessor entrusts the lessee or a third party to purchase the leased property, and the lessor pays the purchase price according to the contract, which is also called entrusted purchase financing lease.

Project finance lease

The lessee signs a project finance lease contract with the lessor with the project’s own property and benefits as guarantee. The lessor has no right to the lessee’s property and income other than the project. The right of recourse and the collection of rent can only be determined based on the cash flow and benefits of the project. The seller (that is, the manufacturer of rental items) uses this method to promote products and expand market share through the rental company it controls. This method can be used for communication equipment, large medical equipment, transportation equipment and even highway operating rights. Others include return-type leases, also known as sale-leaseback financial leases; financing sub-lease, also known as sub-financing leases, etc.