An operating lease, the lease term is shorter, after the end of the lease by the lessor to recover the asset to continue to rent to other units or for their own use, so it can not be recognized as an asset of the enterprise amortization of depreciation.
Financial leasing, also known as financial leasing. It refers to the lessee selected machinery and equipment, the lessor first purchase, and then leased to the lessee to use, the lessee to deliver rent on a regular basis, a combination of financing and financing economic activities. After the expiration of the lease period, the leased equipment can be dealt with by three methods: surrendering the lease, renewing the lease or transferring it to the lessee. Financial leasing is a form of modern leasing with the greatest influence, the widest application and the largest turnover.
Financial leasing refers to the lessor according to the lessee's choice of seller (supplier), to seller to buy the leased goods, provided to the lessee to use, the lessee pays the rent, the lessee expires, the ownership of the goods vested in the lessee's transactions.
Financial leasing is the form of commodity funds in the form of borrowing and lending funds in the form of movement, is a set of financing and financing as one of the credit mode, both commodity credit and capital credit double features. In this process, the lessor through the rental of equipment in the form of goods to the lessee to provide credit facilities; and the lessee directly borrowed equipment commodities, equipment commodities to obtain the right to use, which in fact is to obtain a capital credit, and in the process of engaging in the production and operation of the creation of new value. This form of trade in the form of equipment financing, but also reflects the credit mode of capital financing of financial leasing.