tip1:Fixed interest rate calculation method
Financial leasing generally uses long-term interest rate, calculated by fixed interest rate method, can be divided into fixed annuity method and variable annuity method. The fixed annuity method is characterized by an equal amount of rent for each period. The variable annuity method is based on the trend of rent changes, there are increasing and decreasing ways.
tip2:Advantages of financial leasing
①Faster financing. Leasing will be faster than borrowing to obtain the equipment needed by the enterprise.
②Less restrictive terms. Compared with other forms of long-term debt financing, finance leasing is subject to fewer restrictive terms.
3 ③ less risk of equipment obsolescence. The term of financial leasing is generally 75% of the useful life of the equipment.
④Lower financial risk. The rent is paid in installments, and there is no need to return a large amount of money at the end of the term.
⑤Lower tax burden. Rent can be deducted before tax.
tip3:Disadvantages of financial leasing
①Higher cost of capital. Rent is higher and the cost is larger.
②Less funding flexibility. When the term and amount of rental payments are fixed, it increases the difficulty of enterprise funds scheduling.
③ Higher psychological pressure. Because financial leasing is a considerable amount each time, it is easy to produce a lot of pressure.
tip4:The conditions of financial leasing are:
(1) At the expiration of the lease term, the ownership of the leased asset is transferred to the lessee.
(2) The lessee has an option to purchase the leased asset, and the purchase price entered into is expected to be so much less than the fair value of the leased asset at the time the option is exercised that it is reasonably certain on the commencement date of the lease that the lessee will exercise such option.
(3) The lease term represents a majority (seventy-five percent or more) of the remaining useful life of the leased asset.
(4) In the case of the lessee, the present value of the minimum lease payments on the lease commencement date is almost equal to the original book value of the leased asset on the lease commencement date; in the case of the lessor, the present value of the minimum lease payments on the lease commencement date is almost equal to the original book value of the leased asset on the lease commencement date.
Peace of mind financial leasing in general can be, want to know more about the situation, you can turn to the professionals for help, a better solution to the questions in your mind!