Leasing (English leasing from English to lease) is a type of financial services related to the form of acquisition of fixed assets. The subject of leasing is any non-consumable things, including enterprises, buildings, structures, equipment, vehicles and other movable and immovable property that can be used for business activities.

Types of leasing. By the scope of servicing of the leased property: Pure leasing, if all servicing of the leased property is assumed by the lessee Leasing with a full range of services, when the lessor is entrusted with the full service of the leased property Leasing with a partial set of services, when the lessor is assigned only certain functions property maintenance

By duration: Short-term leasing (up to 1 year) Medium-term leasing (from 1 to 3 years) Long-term leasing (more than 3 years) By purpose: Real leasing Fictitious leasing (the goal is to obtain greater profits through tax and depreciation benefits)

By degree of payback: Leasing with full payback, in which during the term of one contract the cost of the leased property is fully paid to the lessor Leasing with incomplete payback, when during the leasing period only part of the leased property is paid off According to the intentions of the participants: Term leasing - one-time (for one term) leasing Renewable leasing - extended after the expiration of the first contract term

According to the composition of its participants: Direct leasing, in which the owner of the property independently leases it. Direct leasing can only be bilateral and is organized by two participants: the lessor and the tenant. Indirect leasing - when other economic entities participate in the leasing operation in addition to the lessor and lessee. Indirect leasing can be classified as: 1. tripartite leasing (supplier - lessor - lessee) 2. multilateral leasing - with the number of participants from 4 to 7 or more (there are secondary participants servicing the leasing relationship: bank, insurance company, and others)

Leasing is distinguished by payments 1. By form of payment: cash payments, when payments are made using cash; compensation payments, when payments are made either in goods or by providing a counter service to the lessor; mixed payments, when, along with cash payments, payments in goods or services are allowed

2. According to the frequency of payments: periodic payments (annual, quarterly, monthly), paid according to a schedule agreed upon by the parties, which is attached to the leasing agreement; lump sum payments, used in combination with periodic installments, if an advance payment is provided to the lessor

3. According to the method of payment of leasing payments, they are distinguished: payments with equal shares, providing for payments of the same size by the tenant to the lessor; throughout the entire period of the leasing operation, payments with increasing amounts (at the initial stage of leasing, it is more convenient for the tenant to pay rent in small installments, and then, as development of equipment and increasing the rate of production of products produced on it, increasing the amount of one-time commissions throughout the leasing operation) payments with decreasing amounts (in the initial period of leasing, the lessee prefers to pay off most of his debt)

By market sector: Domestic leasing, when all participants in the leasing operation are residents of the same country. External (international) leasing. International leasing includes those operations in which at least one of its participants is not a resident of the country in which the leasing operation is carried out, or all leasing participants represent different countries. 1. export leasing (with export leasing, the foreign party is the lessee and the equipment intended for leasing is exported from the country under the terms of an export contract) 2. import leasing (with import leasing, the foreign party is the lessor, and the equipment is delivered to the lessee’s country under the terms of the import contract) 3. transit leasing, in which all participants are located in different countries.

By type of leased assets: Leasing of physical assets, leasing of movable property (machine and technical leasing); leasing of real estate (long-term lease of buildings and structures): leasing of real estate for industrial purposes leasing of real estate for non-industrial purposes

Forms of leasing: domestic leasing international leasing with subleasing Subleasing is a type of subleasing of a leased asset in which the lessee under a leasing agreement transfers to third parties (lessees under a subleasing agreement) possession and use for a fee and for a period in accordance with the terms of the subleasing agreement the property received previously from the lessor under the leasing agreement and constituting the subject of leasing.

A typical leasing transaction looks like this. 1. The user (after entering into a leasing relationship, the lessee) informs the leasing company what equipment he needs. 2. The leasing company, having made sure of the liquidity of the project, buys this equipment from the manufacturer, or another legal entity or individual selling the property that is the object of leasing. 3. The leasing company (lessor), having become the owner of the equipment, transfers it for temporary use with the right of further redemption (determined by the agreement) to the lessee, receiving leasing payments in return. A typical leasing transaction looks like this. 1. The user (after entering into a leasing relationship, the lessee) informs the leasing company what equipment he needs. 2. The leasing company, having made sure of the liquidity of the project, buys this equipment from the manufacturer, or another legal entity or individual selling the property that is the object of leasing. 3. The leasing company (lessor), having become the owner of the equipment, transfers it for temporary use with the right of further redemption (determined by the agreement) to the lessee, receiving leasing payments in return.

There are three parties involved in the transaction: The Lessor is a participant who acquires ownership of the Leased Subject and transfers it to the Lessee for temporary possession and use under the terms of the Lease Agreement; Lessee – a participant who, under the terms of the Lease Agreement, accepts the Lease Subject for temporary possession and use for business purposes; Seller – a person selected by the Lessee who transfers the Lease Subject into ownership to the Bank on the basis of a Sales and Purchase Agreement for the purpose of its further transfer to the Lessee for temporary possession and use for business purposes under the terms of the Lease Agreement.

USA In the leasing services market, US companies are the most prominent and largest. The level of development of leasing relations in the United States is evidenced by the number of associations uniting participants in the leasing market: Equipment Leasing Association Western Association of Equipment Lessors Eastern Association of Equipment Leasing Companies Association of Equipment Lessors National Vehicle Leasing Association Truck Renting and Leasing Association American Automotive Leasing Association

In the USA, in order for a transaction to satisfy the conditions of financial leasing, it must have the following characteristics: the minimum investment in the leased equipment by the lessor must be at least 20% of its cost; the leasing period does not exceed 80% of the service life of the equipment; the lessee cannot have the right to buy out equipment at a price below its market value determined at the time of application of this right. The most popular in the United States is vehicle leasing. This type of leasing is more often used by banks when they act as lessors.

Germany The largest leasing companies in Germany are leading in Europe and occupy high positions in the world ranking table. This is largely due to the level of qualifications of personnel, the companies’ extensive experience in the market (years), and the availability of the necessary financing on terms acceptable to clients. In Germany, financial leasing is defined as an agreement entered into for a fixed period during which normal termination of the contract is not possible, and lease payments during this period cover at least the costs of acquisition or production plus additional costs, including refinancing costs, from the lessor 11. Such leasing is usually called leasing with full payment (full - pay - out - lease).

Features of the leasing transaction: the service life of the property and the main leasing period are approximately equal; if the service life of the equipment is significantly longer than the initial leasing period, the lessee has the right to either extend the contract or buy the equipment; the lessee’s obligation to compensate the lessor for losses when selling the equipment at the end of the leasing period . If the financial results from the sale are positive, the lessor must receive at least 25% of their value

Japan In Japan, a finance lease is defined as a transaction that satisfies the following two basic requirements: 1. the lease term is fixed and the total amount of the lease payment is determined to be approximately equal to the total cost of acquiring the leased equipment 2. cancellation of the lease agreement during the period is prohibited his actions

A finance lease is considered an offtake transaction if one of the following criteria is met: it is agreed that at the end of the lease period the leased asset will be transferred to the lessee for zero or nominal cash consideration; the equipment is leased installed in the building and therefore cannot be moved; the machinery, plant or equipment manufactured by for special purposes specified by the lessee, so that the result is that the item is difficult to use for any other purpose, the lease period is shorter than 70% of the legally specified service life of the leased item (60% if that service life is 10 years or more), and the lessee has the right to purchase

Financial leasing (credit - bail) takes place only if: the lessor buys equipment before its subsequent rental; the lessor provides the lessee with the opportunity to purchase the property at a pre-agreed price, taking into account the amount of pre-made leasing payments; The lessee uses the equipment for production or commercial activities.

In Kazakhstan, the mechanism of financial leasing, as well as the concept of “leasing” itself, over the past decade has remained a new, unknown, and therefore less popular source of financing for both the majority of SMEs and ordinary individuals - potential retail borrowers. Appearing in the country in the mid-x, along with many other financial instruments that were innovative at that time, leasing gained popularity gradually and slowly, patiently biding its time. Significant depreciation of fixed assets, most of which were put into operation in the middle of the last century, as well as a number of advantages of a leasing transaction over traditional bank lending - these are the factors that contributed to the rapid development of leasing in the country.

Today, leasing, including financial leasing, remains insufficiently popular in Kazakhstan, although the use of this financial instrument will solve many problems of economic development and social policy. The main reason is that the domestic leasing services market has unresolved problems of a legal, institutional, organizational and technical nature. Limiting factors include, first of all, the imperfection of the legislative framework for leasing transactions, since the Law “On Financial Leasing”, Civil, Tax and Customs Codes are subject to significant specification. And also the lack of modern infrastructure of the leasing services market, including limited conditions for obtaining the necessary information; insufficiency of modern technologies for organizing and conducting more complex leasing operations, including at the international level. Kazakhstan has not yet acceded to the 1988 International Convention on Financial Leasing.

There are high risks in the market, limited terms of financing with a high level of investment and a high level of down payment and cost of resources. There is no methodology for quickly assessing the effectiveness of a leasing investment project. Leasing companies do not fully study the needs of various manufacturers and regions of the republic for equipment and technologies. At the same time, many small and medium-sized businesses do not have an understanding of the profitability and prospects of leasing. As practice shows, leasing operations will be attractive and effective for all participants only if there is a high-quality business plan, the preparation of which still seems problematic to many. Taking into account foreign experience, it can be assumed that operational leasing should receive further development. In this case, the lessee returns the equipment to its owner upon expiration of the leasing period, and the lessor receives the main income precisely from the sale of this equipment on the secondary market. There should be securitization of leasing obligations, issue of securities based on leasing agreements, organization of equity financing from suppliers, as well as leasing operations.

It seems appropriate to use contractual mechanisms for distributing risks between several banks and insurance principles to ensure the obligations of the parties. At the current stage of economic development of Kazakhstan, one of the optimal options for diversifying credit and business risk is to carry out a combined commodity-money scheme of leasing operations, where three leasing entities simultaneously act as investors: the manufacturer, the bank, and the lessee. A significant impetus to the development of leasing may be given by the experience of the state using the leasing mechanism in the aviation industry and in agriculture.

Our country lacks a comprehensive program that would include the following elements: a more developed infrastructure of the leasing services market would be thought out and created, which would include: training of qualified personnel, information coverage of the services provided; providing banks with a wider range of benefits for long-term lending of leasing transactions (more than 3 years); development of a guarantee system to avoid 100% collateral when leasing (for example insurance). along with the measures already taken (lack of currency control under international leasing contracts), strengthen a set of measures to attract foreign investment within the framework of leasing.

Leasing involves 100 percent financing and does not require quick repayment of the entire debt amount; leasing provides financing to the tenant in exact accordance with the needs of the financed assets. This is especially beneficial for smaller borrowers who simply don't have the convenience and flexibility of loan or revolving credit financing available to more established companies. The leasing agreement can be developed taking into account the specific characteristics of the tenants; many tenants have long-term financial plans, during which their financial capabilities are largely limited. Leasing allows you to overcome such restrictions and thereby contributes to greater mobility in investment and financial planning; leasing increases the tenant's flexibility in decision-making. While when buying there is only the alternative of “not buying”, when leasing the lessee has a wider choice. From leasing contracts with various conditions, the tenant can choose the one that most closely meets his needs and capabilities. Advantages of leasing.

The specific disadvantages of leasing include the following: the final cost of leasing is usually higher than purchasing equipment on credit; payments are mandatory and are made on time, regardless of the condition of the equipment and the results of business activities; the benefits from accelerated depreciation of equipment go to the lessor; the financial risks of the enterprise increase; additional guarantees or collateral are required; legal complexity of the transaction, etc.

Slide 2

Leasing (English leasing from English to lease) is a type of financial services related to the form of acquisition of fixed assets. The subject of leasing is any non-consumable things, including enterprises, buildings, structures, equipment, vehicles and other movable and immovable property that can be used for business activities.

Slide 3

Types of leasing. By the scope of servicing of the leased property: Pure leasing, if all servicing of the leased property is assumed by the lessee Leasing with a full range of services, when the lessor is entrusted with the full service of the leased property Leasing with a partial set of services, when the lessor is assigned only certain functions property maintenance

Slide 4

By duration: Short-term leasing (up to 1 year) Medium-term leasing (from 1 to 3 years) Long-term leasing (more than 3 years) By purpose: Real leasing Fictitious leasing (the goal is to obtain greater profits through tax and depreciation benefits)

Slide 5

By degree of payback: Leasing with full payback, in which during the term of one contract the cost of the leased property is fully paid to the lessor Leasing with incomplete payback, when during the leasing period only part of the leased property is paid off According to the intentions of the participants: Term leasing - one-time (for one term) leasing Renewable leasing - extended after the expiration of the first contract term

Slide 6

According to the composition of its participants: Direct leasing, in which the owner of the property independently leases it. Direct leasing can only be bilateral and is organized by two participants: the lessor and the tenant. Indirect leasing - when other economic entities participate in the leasing operation in addition to the lessor and lessee. Indirect leasing can be classified as: tripartite leasing (supplier - lessor - lessee) multilateral leasing - with the number of participants from 4 to 7 or more (there are secondary participants servicing the leasing relationship: bank, insurance company, and others)

Slide 7

Direct leasing.

Manufacturer-supplier Leasing contract Delivery and maintenance of the leased item Leasing payments Lessee

Slide 8

Indirect leasing.

Manufacturer Supply of equipment Lessee Leasing payments Property purchase and sale contract Intermediary (lessor) Leasing contract

Slide 9

Leasing is distinguished by payments 1. By form of payment: cash payments, when payments are made using cash; compensation payments, when payments are made either in goods or by providing a counter service to the lessor; mixed payments, when, along with cash payments, payments in goods or services are allowed

Slide 10

2. According to the frequency of payments: periodic payments (annual, quarterly, monthly), paid according to a schedule agreed upon by the parties, which is attached to the leasing agreement; lump sum payments, used in combination with periodic installments, if an advance payment is provided to the lessor

Slide 11

3. According to the method of payment of leasing payments, they are distinguished: payments with equal shares, providing for payments of the same size by the tenant to the lessor; throughout the entire period of the leasing operation, payments with increasing amounts (at the initial stage of leasing, it is more convenient for the tenant to pay rent in small installments, and then, as development of equipment and increasing the rate of production of products produced on it, increasing the amount of one-time commissions throughout the leasing operation) payments with decreasing amounts (in the initial period of leasing, the lessee prefers to pay off most of his debt)

Slide 12

By market sector: Domestic leasing, when all participants in the leasing operation are residents of the same country. External (international) leasing. International leasing includes those operations in which at least one of its participants is not a resident of the country in which the leasing operation is carried out, or all leasing participants represent different countries. export leasing (with export leasing, the foreign party is the lessee and the equipment intended for leasing is exported from the country under the terms of an export contract) import leasing (with import leasing, the foreign party is the lessor, and the equipment is delivered to the lessee’s country under the terms of an import contract) transit leasing, with in which all participants are located in different countries.

Slide 13

By type of leased assets: Leasing of physical assets, leasing of movable property (machine and technical leasing); leasing of real estate (long-term lease of buildings and structures): 2.1 leasing of real estate for industrial purposes 2.2 leasing of real estate for non-industrial purposes

Slide 14

Leasing forms:

domestic leasing international leasing subleasing Subleasing is a type of subleasing of a leased asset, in which the lessee under a leasing agreement transfers to third parties (lessees under a subleasing agreement) for possession and use for a fee and for a period in accordance with the terms of the subleasing agreement, property previously received from the lessor under leasing agreement and constituting the subject of leasing.

Slide 15

Features of leasing operations in developed countries

USA Germany Japan France

Slide 16

USA In the leasing services market, US companies are the most prominent and largest. The level of development of leasing relations in the United States is evidenced by the number of associations uniting participants in the leasing market, there are 15 of them: Equipment Leasing Association Western Association of Equipment Lessors Eastern Association of Leasing Companies Eastern Association of Equipment Lessors National Vehicle Leasing Association Truck Renting and Leasing Association American Automotive Leasing Association

Slide 17

In the USA, in order for a transaction to satisfy the conditions of financial leasing, it must have the following characteristics: the minimum investment in the leased equipment by the lessor must be at least 20% of its cost; the leasing period does not exceed 80% of the service life of the equipment; the lessee cannot have the right to buy out equipment at a price below its market value determined at the time of application of this right. The most popular in the United States is vehicle leasing. This type of leasing is more often used by banks when they act as lessors.

Slide 18

Germany The largest leasing companies in Germany are leading in Europe and occupy high positions in the world ranking table. This is largely due to the level of personnel qualifications, the companies’ extensive experience in the market (35-45 years), and the availability of the necessary financing on terms acceptable to clients. In Germany, a financial leasing is defined as an agreement entered into for a fixed period during which normal termination of the contract is not possible, and lease payments during this period cover at least the costs of acquisition or production plus additional costs, including refinancing costs, from the lessor11. Such leasing is usually called leasing with full payment (full - pay - out - lease).

Slide 19

Features of the leasing transaction: the service life of the property and the main leasing period are approximately equal; if the service life of the equipment is significantly longer than the initial leasing period, the lessee has the right to either extend the contract or buy the equipment; the lessee’s obligation to compensate the lessor for losses when selling the equipment at the end of the leasing period . If the financial results from the sale are positive, the lessor must receive at least 25% of their value

Slide 20

Japan In Japan, a finance lease is defined as a transaction that satisfies the following two basic requirements: 1. the lease term is fixed and the total amount of the lease payment is determined to be approximately equal to the total cost of acquiring the leased equipment 2. cancellation of the lease agreement during the period is prohibited his actions

Slide 21

A finance lease is considered an offtake transaction if one of the following criteria is met: it is agreed that at the end of the lease period the leased asset will be transferred to the lessee for zero or nominal cash consideration; the equipment is leased installed in the building and therefore cannot be moved; the machinery, plant or equipment manufactured by for special purposes specified by the lessee, so that as a result it is difficult to use the item for any other purpose, the lease period is shorter than 70% of the legally specified service life of the leased item (60% if that service life is 10 years or more), and the lessee has the right to purchase

Slide 22

France France is one of the few countries that has specific leasing legislation. Types of leasing: leasing of movable property without the right of redemption, leasing of movable property with the right of redemption (financial leasing)

Slide 23

Financial leasing (credit - bail) takes place only if: the lessor buys equipment before its subsequent rental; the lessor provides the lessee with the opportunity to purchase the property at a pre-agreed price, taking into account the amount of pre-made leasing payments; The lessee uses the equipment for production or commercial activities.

Slide 24

Advantages of leasing.

leasing involves 100% financing and does not require quick repayment of the entire amount of debt; leasing provides financing to the tenant in exact accordance with the needs of the financed assets. This is especially beneficial for smaller borrowers who simply don't have the convenience and flexibility of loan or revolving credit financing available to more established companies. The leasing agreement can be developed taking into account the specific characteristics of the tenants; many tenants have long-term financial plans, during which their financial capabilities are largely limited. Leasing allows you to overcome such restrictions and thereby contributes to greater mobility in investment and financial planning; leasing increases the tenant's flexibility in decision-making. While when buying there is only the alternative of “not buying”, when leasing the tenant has a wider choice. From leasing contracts with different conditions, the tenant can choose the one that most closely meets his needs and capabilities

View all slides

1 of 24

Presentation on the topic: Leasing

Slide no. 1

Slide description:

Slide no. 2

Slide description:

Leasing (English leasing from English to lease) is a type of financial services related to the form of acquisition of fixed assets. The subject of leasing is any non-consumable things, including enterprises, buildings, structures, equipment, vehicles and other movable and immovable property that can be used for business activities.

Slide no. 3

Slide description:

Types of leasing. By the volume of servicing of the leased property: Pure leasing, if all servicing of the leased property is assumed by the lessee Leasing with a full range of services, when the lessor is entrusted with the full service of the leased property Leasing with a partial set of services, when the lessor is entrusted with only certain functions for servicing the property

Slide no. 4

Slide description:

By duration: Short-term leasing (up to 1 year) Medium-term leasing (from 1 to 3 years) Long-term leasing (more than 3 years) By purpose: Real leasing Fictitious leasing (the goal is to obtain greater profits through tax and depreciation benefits)

Slide no. 5

Slide description:

By degree of payback: Leasing with full payback, in which during the term of one contract the cost of the leased property is fully paid to the lessor Leasing with incomplete payback, when only part of the leased property is paid off during the leasing term According to the intentions of the participants: Term leasing - one-time (for one term) leasingRenewable leasing - extended after the first term of the contract

Slide no. 6

Slide description:

According to the composition of its participants: Direct leasing, in which the owner of the property independently leases it. Direct leasing can only be bilateral and is organized by two participants: the lessor and the tenant. Indirect leasing - when other economic entities participate in the leasing operation in addition to the lessor and lessee. Indirect leasing can be classified as: tripartite leasing (supplier - lessor - lessee) multilateral leasing - with the number of participants from 4 to 7 or more (there are secondary participants servicing the leasing relationship: bank, insurance company, and others)

Slide no. 7

Slide description:

Slide no. 8

Slide description:

Slide no. 9

Slide description:

Leasing is distinguished by payments1. By form of payment: cash payments, when payments are made using cash; compensation payments, when payments are made either in goods or by providing a counter service to the lessor; mixed payments, when payments in goods or services are allowed along with cash payments

Slide no. 10

Slide description:

2. By frequency of payments: periodic payments (annual, quarterly, monthly), paid according to a schedule agreed upon by the parties, which is attached to the leasing agreement; one-time payments used in combination with periodic installments, if an advance payment to the lessor is provided

Slide no. 11

Slide description:

3. According to the method of payment of leasing payments, they are distinguished: payments with equal shares, providing for payments of the same size by the tenant to the lessor, throughout the entire period of the leasing operation; payments with increasing amounts (at the initial stage of leasing, it is more convenient for the tenant to pay rent in small installments, and then, as development progresses, equipment and increasing the rate of production of products produced on it, increasing the size of one-time commissions throughout the leasing operation) payments with decreasing amounts (in the initial period of leasing, the lessee prefers to pay off most of his debt)

Slide no. 12

Slide description:

By market sector: Domestic leasing, when all participants in the leasing operation are residents of the same country. External (international) leasing. International leasing includes those operations in which at least one of its participants is not a resident of the country in which the leasing operation is carried out, or all leasing participants represent different countries. export leasing (with export leasing, the foreign party is the lessee and the equipment intended for leasing is exported from the country under the terms of an export contract) import leasing (with import leasing, the foreign party is the lessor, and the equipment is delivered to the lessee’s country under the terms of an import contract) transit leasing, with in which all participants are located in different countries.

Slide no. 13

Slide description:

By type of leased assets: Leasing of physical assets, leasing of movable property (machine and technical leasing); leasing of real estate (long-term lease of buildings and structures): 2.1 leasing of real estate for industrial purposes 2.2 leasing of real estate for non-productive purposes

Slide no. 14

Slide description:

Forms of leasing: domestic leasing, international leasing, subleasing, subleasing - a type of subleasing of a leased asset, in which the lessee under a leasing agreement transfers to third parties (lessees under a subleasing agreement) for possession and use for a fee and for a period in accordance with the terms of the subleasing agreement, property previously received from the lessor under leasing agreement and constituting the subject of leasing.

Slide no. 15

Slide description:

Slide no. 16

Slide description:

USA In the leasing services market, US companies are the most prominent and largest. The level of development of leasing relations in the United States is evidenced by the number of associations uniting participants in the leasing market, there are 15 of them: Equipment Leasing Association Western Association of Equipment Lessors Eastern Association of Leasing Companies Eastern Association of Equipment Lessors National Vehicle Leasing Association Truck Renting and Leasing Association American Automotive Leasing Association

Slide no. 17

Slide description:

In the United States, in order for a transaction to satisfy the conditions of financial leasing, it must have the following characteristics: the minimum investment in the leased equipment by the lessor must be at least 20% of its cost; the leasing period does not exceed 80% of the service life of the equipment; the lessee cannot have the right to repurchase the equipment at a price below its market value determined at the time of application of this right. The most popular in the USA is leasing of vehicles. This type of leasing is more often used by banks when they act as lessors.

Slide no. 18

Slide description:

Germany The largest leasing companies in Germany are leading in Europe and occupy high positions in the world ranking table. This is largely due to the level of qualifications of personnel, extensive experience of companies in the market (35-45 years), the availability of the necessary financing on terms acceptable to clients. In Germany, financial leasing is defined as an agreement concluded for a fixed period, during which the usual termination of the contract is impossible, and lease payments during this period cover at least the cost of acquisition or production plus additional costs, including refinancing costs, from the lessor11. Such leasing is usually called leasing with full payment (full - pay - out - lease).

Slide no. 19

Slide description:

Features of a leasing transaction: the service life of the property and the main leasing period are approximately equal; if the service life of the equipment is significantly longer than the initial leasing period, the lessee has the right to either extend the contract or buy out the equipment; the lessee's obligation to compensate the lessor for losses when selling the equipment at the end of the leasing period. If the financial results from the sale are positive, the lessor must receive at least 25% of their value

Slide no. 20

Slide description:

Japan In Japan, finance leasing is defined as a transaction that satisfies the following two basic requirements: 1. the lease term is fixed, and the total amount of the lease payment is determined so as to approximately equal the total cost of acquiring the leased equipment 2. cancellation of the leasing agreement during the period of its validity is prohibited

Slide no. 21

Slide description:

A finance lease is considered a disposal transaction if one of the following criteria is met: it is agreed that at the end of the lease period the leased item will be transferred to the lessee for zero or nominal cash consideration; the lease is for equipment installed in a building and therefore cannot be moved; the lease is for machinery, plant or equipment manufactured for specific purposes specified by the lessee such that, as a result, the asset is difficult to be used for any other purpose, the lease period is shorter than 70% of the statutory life of the leased asset (60% if that service life is 10 years or more), and the lessee has right of purchase

Slide no. 22

Slide description:

Slide no. 23

Slide description:

Financial leasing (credit - bail) takes place only if: the lessor buys equipment before its subsequent rental; the lessor provides the lessee with the opportunity to purchase the property at a pre-agreed price, taking into account the amount of pre-made leasing payments; The lessee uses the equipment for production or commercial activities.

Slide no. 24

Slide description:

Advantages of leasing. leasing involves 100% financing and does not require quick repayment of the entire amount of debt; leasing provides financing to the tenant in exact accordance with the needs of the financed assets. This is especially beneficial for smaller borrowers who simply don't have the convenience and flexibility of loan or revolving credit financing available to more established companies. The leasing agreement can be developed taking into account the specific characteristics of the tenants; many tenants have long-term financial plans, during which their financial capabilities are largely limited. Leasing allows one to overcome such restrictions and thereby contributes to greater mobility in investment and financial planning. Leasing increases the tenant's flexibility in decision-making. While when buying there is only the alternative of “not buying”, when leasing the tenant has a wider choice. From leasing contracts with different conditions, the tenant can choose the one that most closely meets his needs and capabilities

Leasing and engineering One of the forms of foreign economic activity is the movement of technologies between countries. The movement of technology comes in the form of selling abroad licenses (the right to produce certain goods and technologies for their production), patents (exclusive copyright to dispose of an invention for a period established by law), consulting on technological issues and training of engineering and technical personnel. Leasing and engineering are one of the forms of sports lending on the global market and the movement of technology.

Leasing is a form of export credit without transferring ownership of the goods to the lessee. Leasing - rent, property rental. Leasing provides the lessor with a profit not lower than the average, and provides the lessee with: the use of the latest machinery and equipment with minimal capital costs, the construction of enterprises, residential buildings, social facilities, and the subsequent repurchase of machinery and equipment. In international practice, two forms of leasing are distinguished: financial and operational. Leasing

Financial leasing Financial leasing is characterized by a long lease period, during which all or most of the cost of the equipment is depreciated. In the case of financial leasing, the lessor, through the rent, fully or partially reimburses the costs of the leased property, and also makes a profit.

Operating leasing Operating leasing is the transfer of property for rent for a period that is shorter than the period of its economic functioning. Operating leasing usually includes construction equipment (cranes, excavators), transport, and computer equipment. Leasing differs according to the objects of transactions: movable property, real estate

Leaseback A special case is leaseback, in which the seller of the leased property is also a lessee.

Leasing Separate leasing with additional attraction of funds, or leasing partially financed by the lessor. The lessor, when purchasing equipment, pays from his own funds not the entire amount, but only a part. He borrows the rest of the amount

Forms of settlements under contracts When purchasing equipment in a leasing transaction, the main forms of settlements with suppliers are used: direct bank transfer, payment under a payment return guarantee (bank), letter of credit,

General leasing A leasing agreement that gives the lessee the right to add to the list of leased equipment without additional approval from the lessor. That is, this agreement makes it possible to conclude a general agreement on the provision of a leasing line, according to which the lessee, if necessary, can take additional property without concluding a new agreement each time.

Subject of leasing The subject of leasing is any non-consumable things, including enterprises, buildings, structures, equipment, vehicles and other movable and immovable property. In accordance with Part 2 of Article 3 of the Law on Leasing, the subject of leasing cannot be land plots and other natural objects , as well as objects limited or withdrawn from circulation. A similar restriction is established by the Civil Code of the Russian Federation, which in Article 666 establishes that the subject of a financial lease agreement can be any non-consumable things, except for land plots and other natural objects.

Example of a leasing transaction Telecommunications company XYZ is developing a network of payphones. In connection with the relocation of business to the regions, it became necessary to open a branch in the city of N. The company’s IT department was tasked with equipping the office: creating a network and information infrastructure, preparing user jobs. To support activities in the specified XYZ region, a database server is needed, used by the operator’s billing system, a network data storage system and a switch for building a local network. In addition, for employees to work, it is necessary to equip 14 stationary workstations and two mobile workstations for the manager and commercial director of the new office.

XYZ chose IBS Platformix as its equipment supplier. The customized order includes the following equipment: 1 Dell™ Server 1 Dell™ Storage System 1 Dell™ Gigabit Ethernet Switch 14 Dell™ Desktops 2 Dell™ Laptops The cost of the equipment is $30,000. Example of a leasing transaction

For a small company that has already invested heavily in business development in the region, a one-time cost of $30,000 poses a serious difficulty. The company's management decides to contact the bank for a loan. The Dell Systems manager also suggests considering the option of a leasing deal. Calculation of leasing supply leads to the following results: Cost of Dell equipment (including VAT): $30,000 Amount of advance payment: 30% ($9,000) Duration of the leasing agreement: 12 months Amount of leasing payments (including VAT): $23,940 Total cost of Dell equipment: $32,940

Thus, the equipment cost increase factor is about 9%. Compared to a loan, the leasing scheme also has a number of additional advantages: Profit tax savings - $4,200 Leasing payments are fully included in the cost price, which allows you to significantly reduce the amount of profit tax. When purchasing equipment using a loan or your own funds, only depreciation deductions are included in the cost price. Property tax savings - $600 The purchased equipment is placed on the balance sheet of the lessee company. In this case, an accelerated depreciation coefficient of 3 is applied.

Leasing (English leasing from English to lease
lease) - a type of financial service,
related to the form of acquisition
fixed assets.
The subject of leasing is any
non-consumable items, including
enterprises, buildings, structures,
equipment, vehicles and
other movable and immovable property,
which can be used for
entrepreneurial activity.

ADVANTAGES OF LEASING.