What is financial leasing? This is a rental that has a number of distinguishing features. Let us analyze some points related to this term.
Let's try to parse the algorithm using a specific example. Suppose that an entrepreneur or company does not have enough material means to acquire the necessary equipment. In this case, you can apply to the bank for a loan, taking the missing amount at high interest rates, or you can purchase the necessary machines in the company using financial leasing.
Leasing scheme
The company will consider the proposal, analyze its own profit. Upon approval, the lessor will lease the property to the company under a specific contract.
Under its terms, the lessee will pay a certain amount each month to the company, which is called lease payments.
After a certain period of time, the equipment is redeemed, having paid the residual price for it.
Parties to the agreement
The financial lease agreement includes three parties:
- the recipient of the property;
- leasing company;
- seller.
The legal or natural person acts as the recipient of the property, to whom the leased asset is leased for a certain period of time, with a chance of a full redemption.
A leasing company is called the side that acquires equipment, transport, real estate.
The seller refers to the party selling the valuable property.
In some situations, a finance lease is between two parties if the owner of the property is the lessor.
Destination
The purpose of such an event for the company is to expand production, modernize the production line, which allows counting on substantial profits.
Financial leasing involves the rapid sale of expensive equipment, vehicles, real estate by the seller.
Objects of leasing
Under Russian law, it is possible to broadcast (rent) certain property:
- the property;
- automobile transport;
- enterprises;
- equipment.
Inability to lease
Note that there are some objects that are prohibited under domestic law. For example, this applies to military items.
Also, one cannot count on leasing the following property:
- without factory or individual number;
- natural resources, land plots;
- property taken out of circulation.
Financial leasing is not acceptable with the following object parameters:
- low liquidity;
- with an unreliable manufacturer;
- has been in use for more than seven years.
Leasing options
Depending on the timing, the economic nature of the contracts, it is customary to distinguish three types of leasing:
- operating;
- returnable;
- financial.
In addition, there are leases of equipment, real estate, automobile transport. Taking into account the risk, such transactions are classified into groups:
- guaranteed view when risks are shared among all participants;
- an unsecured option in which the lessee does not give any guarantees regarding the fulfillment of his own obligations;
- partially secured view in which an insurance contract is concluded.
Return lease
He is considered a special kind of deal. The seller of property and the lessee act as one person. The company enters into an agreement with the leasing company on the transfer of property into ownership for a certain amount and is immediately the lessee.
The specificity of this type is that the production process does not stop, equipment is not seized. The company receives a large amount, using which it can increase material profit. Small amounts are paid monthly. Such a deal is beneficial to enterprises in need of additional funds for business development. You can count on receiving money from the leasing company without losing equipment, without stopping the production process.
There are certain disadvantages to leaseback. Such transactions are under the scrutiny of tax authorities. They perceive such agreements as an option to evade federal taxes.
That is why fiscal authorities are comparing a possible loan and leasing terms. If inconsistencies are found, they suspect the entrepreneur of trying to avoid paying taxes to the federal budget of the Russian Federation.
Operational leasing
It means a transaction in which case the duration of the use of the property is significantly longer than the validity of the contract. It can be compared with the usual rental option.
The leasing company is fully responsible for the subject of the contract. It is the company that is responsible for any risks that are associated with the loss or damage of property. The recipient has the right to terminate the contract with the company if he was provided with an object unsuitable for use.
After the contract is completed, the lessee has the following rights:
- leave the property to the lessor;
- exchange it for another item;
- draw up a new contract;
- buy equipment (transport), become the owner.
Operating leasing has a positive impact on the development of the production process, as the equipment is being updated.
financial leasing
Let us analyze its distinctive features. Financial leasing is an option to attract material resources for specific purposes.
The terms of use of the leased asset correspond to the terms of the contract. By its completion, the cost of equipment is approaching zero. Basically, the lessee tries to get property in personal ownership.
International financial leasing has the following conditions and signs:
- property is purchased by the lessor in order to transfer it to leasing, not for personal use;
- the buyer has the right to choose the seller and property;
- the seller is informed about the existence of the leasing agreement, but the subject determines the buyer;
- the lessee sends all claims regarding the quality of transport, machinery, equipment to the direct seller, without contacting the lessor;
- upon damage to the subject of the transaction, signs the acceptance certificate, and it becomes the property of the buyer.
Transaction Stages
Their sequence is determined by the federal law on financial leases, property leasing.
First, a leasing company is selected. Preference is best given to large companies that are subsidiaries of large institutions.
The Law on Financial Leasing governs the signing of an agreement. The client must provide the following package:
- declaration of desire to lease a particular object;
- extract from a financial institution about the current assets of the company for the last year;
- provide reporting for four months;
- confirmation of insurance of the leased asset;
- contract with suppliers.
The Federal Law on financial leasing allows the lessor to request other papers and documents, taking into account the specifics of the transaction, as well as the features of the company.
Next, the client makes the first cash contribution, after which the company becomes the owner of the contract object.
An item acquired on lease allows you to improve labor productivity, increase material profit.
Equipment leasing
He is considered the most profitable way to increase his income by the enterprise, the opportunity to develop production without significant losses, create new production lines, upgrade machines and devices. In leasing, you can get computer equipment, materials for the operation of the office.
In agriculture, it is allowed to purchase new apparatuses and devices that are required for collecting milk, processing crops, butchering cattle meat.
Leasing in the restaurant business is aimed at the purchase of equipment required for quality trade.
A similar option applies to the oil refining, gas, woodworking, chemical industries.
Benefits of Equipment Leasing
It allows an individual entrepreneur or company to develop even in those cases when they do not have sufficient financial resources for the purchase of modern equipment.
Due to the uniform distribution of payments, the company can distribute to plan its work, there is no need for a one-time payment.
Immediately after signing the contract, the company begins to use the subject of the transaction, and after the expiration of the contract, you can purchase equipment at a residual value.
Thanks to profits, the company almost covers monthly payments; they do not adversely affect the functioning of the enterprise.
Vehicle Leasing
The Financial Leasing Convention gives both private and legal entities the right to purchase a car. This type of transaction began to be used in Russia only in recent years.
After the leasing period is over, you can become the full owner of the vehicle.
The advantages of the transaction are that immediately after the payment of the down payment, a private or legal entity receives the right to use vehicles.
Registration of such transactions is carried out not only by financial institutions (banks), but also by car dealerships. Consider the algorithm of actions. The client shows a driver’s license, a civil passport.
Next, an agreement is concluded between the lessor and the future owner of the vehicle, which allows the client to buy the car and become its full owner.
In addition, a purchase and sale agreement is drawn up and signed between the transport provider (seller) and the bank (company), which assumed the responsibilities of the lessor.
The size of the down payment does not exceed 20-30 percent of the total value of the car under the contract. A prerequisite is insurance for two packages: CASCO, CTP.
All problems regarding the registration of the car in the traffic police, passing the technical inspection of the vehicle, the leasing company takes care of.
After completion of all procedures, the car is transferred to the lessee. The owner is a leasing company: bank, car dealer. Among the advantages of such a deal, they note the purchase of not only passenger vehicles, but also special equipment.