Financial leasing areas, functions, elements and operating procedures
Introduction: Financial leasing is a market economy to a certain stage of development and the emergence of a more adaptable financing methods,, then we understand its functions, areas, elements and operating procedures? The following is the relevant information, welcome to read and learn.
The backwardness of equipment, low technology level is a common phenomenon in China's small and medium-sized enterprises. In the face of increasingly fierce competition in the market, it is urgent to update and remodeling, which undoubtedly requires a large amount of money, with the current economic status of small and medium-sized enterprises, relying entirely on bank credit or listed financing, is neither possible nor realistic. In this case, the simple and fast financial leasing with lower credit requirements is an effective complementary way to solve this problem.
Financial leasing is a highly adaptable financing method arising from the development of market economy to a certain stage, which is a new financial industry integrating financing and financing, trade and technology renewal. After more than 60 years of development, financial leasing in the western developed countries has been second only to bank credit financial tools, now nearly 1/3 of the global investment through this way to complete. At present, the market penetration rate of the financial leasing industry in developed countries is generally 15%?30%, many countries attach great importance to this business, Russia to the development of financial leasing as one of its five measures to develop the economy; in the United States and China? WTO accession?
The financial leasing market is one of the most important areas of China's economy, and it is one of the most important areas of China's economy.
Since December 12, 2001, foreign institutions can be allowed to engage in financial leasing business in China. China's financial leasing industry began in the early 1980s, and in the course of development over the past three decades, it has given full play to the functions of financial leasing: i.e., financing function, investment function, promotion function and asset management function. Fully expand the broad space for development: that is, in the field of production, the application of financial leasing can expand substantial investment to drive employment growth, accelerate the technological transformation of enterprises and equipment upgrading, and promote the use of high-tech and high-end equipment; in the field of circulation, the application of financial leasing can change the traditional circulation mode of the original production, transportation, sales and other sectors that are separated from each other, and establish the integration of the production and marketing system of storage, production, supply and marketing, and promote the sales of domestically produced equipment. Marketing system, promote the sale of domestic equipment, expand the market share of China-made equipment; financial field, the use of financial leasing can change the single loan financing, improve the financial market elements, improve the asset structure of commercial banks, reduce business risks, expand the scale of financing for small and medium-sized enterprises; financial and tax field, financial leasing and financial, tax policy, can change the original financial accumulation, distribution, input mode, tax relief function. In the field of finance and taxation, financial leasing can change the original financial accumulation, distribution, input method, tax relief function, and give full play to the leverage of finance and taxation funds; in the field of state-owned assets management, the use of financial leasing can reduce the possession of fixed assets, improve the liquidity of funds, revitalize the existing state-owned assets, value preservation and value-added; in the field of the use of real enterprises, financial leasing in the electrical equipment, machining equipment, medical equipment, communications equipment, environmental protection equipment, aviation aircraft, teaching and scientific research equipment, The role played by financial leasing in electrical equipment, mechanical processing equipment, medical equipment, communication equipment, environmental protection equipment, aviation aircraft, teaching and scientific research equipment, apartment and hotel equipment, etc. is particularly obvious. With the further opening of the financial leasing market, China's financial leasing will be more development, but also for small and medium-sized enterprises through this way of financing to provide more convenient conditions.
A general overview of financial leasing
Due to the low credit rating and weak strength, it is difficult for SMEs to obtain loans from banks. Financial leasing is very suitable for small and medium-sized enterprises because of its combination of financing and financing, the leasing company can recover and deal with the leased goods when problems arise, and thus does not have high requirements for enterprise creditworthiness and guarantee when dealing with financing. In addition, financial leasing belongs to off-balance sheet financing, which is not reflected in the liability items of the enterprise's financial statements and does not affect the enterprise's creditworthiness. This is very favorable to the need for multi-channel financing . SMEs is very favorable. Financial leasing is also conducive to promoting enterprise technological transformation, avoiding the trouble of dealing with old equipment when updating equipment, thus accelerating equipment renewal.
(I) the definition and main features of financial leasing
Financial leasing refers to leases that substantially transfer all or substantially all of the risks and rewards associated with ownership of an asset. The ownership of the asset may or may not be ultimately transferred. An essential difference between financial leasing and traditional leasing is that traditional leasing calculates the rent by the time the lessee leases the object, while financial leasing calculates the rent by the time the lessee occupies the financing cost.
The main feature of financial leasing is: because the ownership of the leased object is only a form of ownership taken by the lessor in order to control the risk of the lessee's repayment of rent, at the end of the contract may ultimately be transferred to the lessee, so that the purchase of the leased object by the lessee's choice, the repair and maintenance of which is also the responsibility of the lessee, and the lessor only to provide financial services. The principle of rent calculation is that the lessor takes the purchase price of the leased object as the basis and calculates the rent according to the time the lessee occupies the lessor's funds and according to the interest rate agreed by both parties. It is essentially a financial transaction dependent on traditional leasing and is a special kind of financial instrument. It is combined with trade, so it must be two contracts tripartite parties to complete the whole transaction. This is a financial lease is different from installment payments and debt-laden credit (which involves only a general two-party relationship) is an important difference.
(ii) the main role of financial leasing
financial leasing due to the control of the ownership of the leased object features, anti-risk ability than the bank, so for small and medium-sized enterprise financing can play a role in promoting. For small and medium-sized enterprises, financial leasing can play a positive role in:
1. Simple procedures
Small and medium-sized enterprises, due to their own reasons, borrowing from the bank lack of credit and guarantee, it is difficult to obtain loans from the bank. The way of financial leasing has the characteristics of project financing, repaid by the benefits generated by the project itself, the capital provider only retains a limited interest in the project, the credit review procedures are simple, financing and financing as a whole, greatly saving time, so that the enterprise can obtain the right to use the equipment in the shortest possible time, production and operation, and quickly seize the market opportunities.
2. Financial leasing can extend the period of capital financing and increase the cash flow of SMEs
If SMEs purchase equipment from bank loans, the loan period is usually much shorter than the life of the equipment. Leasing the same type of equipment is not, the financing period can be close to the asset's useful life, and therefore its cost can be spread over a longer period of time. Most of the capital of small and medium-sized enterprises can maintain the flow of state, the cost is spread over the entire useful life of the asset, can be more closely matched with the operating income of the enterprise, and can avoid the introduction of a large number of equipment to consume funds caused by the capital turnover difficulties.
3. Using financial leasing, SMEs can carry out faster and simpler equipment renewal and technological transformation
Financial leasing is characterized by easy recovery, easy disposal, and participation in the scope of activities that cannot be operated by the operating bank, so the creditworthiness of the lessee enterprise and the requirements of project guarantee are not very high, which enables most SMEs to carry out equipment renewal and technological transformation in this way. technological transformation.
4. Financial leasing can enable SMEs to avoid the adverse effects of inflation and prevent exchange rate and interest rate risks
In the case of inflation and currency depreciation, the price of equipment is bound to rise, while the rent of financial leasing is generally based on the price of the equipment at the time of signing the lease, and is almost unchanged during the lease period, which means that the enterprise will not have to pay more money costs due to inflation. The cost of capital. If purchasing leased objects from abroad, foreign exchange is required, financial leasing can convert foreign exchange into RMB and lease in RMB, so that the lessee enterprise can avoid the exchange rate risk due to the depreciation of RMB. For the financial leasing in the beginning of the use of fixed interest rate contract, the lessee enterprise can also avoid interest rate fluctuations brought about by the interest rate risk.
5, separate accounting
Finance leasing is off-balance sheet financing, not reflected in the liability items of the enterprise's balance sheet. And general loans are all reflected in the liabilities of the enterprise, affecting the creditworthiness of the enterprise. This is very important for enterprises, especially small and medium-sized enterprises, that need multiple channels of financing. Enterprises can finance (lease) up to 100 percent of the value of the leased property, thereby saving liquidity and maintaining existing credit lines. This off-balance sheet financing frees up liquidity, expands sources of funding, and breaks through current budget size constraints.
In addition, financial leasing has cost savings, sales promotion and other aspects of the role.
(C) types of financial leasing
1, simple financial leasing
Simple financial leasing refers to, by the lessee to choose the need to purchase the leasing object, the lessor through the leasing project risk assessment after the leasing of leased objects to the lessee to use. In order to obtain the leased object, the lessor first purchases the leased object selected by the lessee in full, and calculates the rent according to the fixed interest rate and lease term, based on the length of time the lessee occupies the lessor's financing principal, and the lessee pays the rent for each installment in accordance with the contract, and sells the ownership of the leased object to the lessee at a nominal price at the end of the term. The lessee has no ownership but enjoys the right to use the leased object and is responsible for the repair and maintenance of the leased object during the entire lease period. The lessor is not responsible for the good or bad of the leased object, and the equipment is depreciated on the lessee's side.
2, financial subleasing, also known as sub-financial leasing
The subleasing business refers to the same object as the subject of multiple financial leasing business. In the subleasing business, the lessee of the previous lease contract is at the same time the lessor of the next lease contract, known as the sublessor. The sublessor leases the leased object from another lessor and subleases it to a third party, and the sublessor collects the difference in rent for the purpose. Subfinancial leasing mostly occurs in cross-border financial leasing business. The second lessor can not use their own funds and by playing a role similar to the role of financial leasing brokers and profit, and can share the first lessor in the country's tax preferences, reduce the cost of financing.
3, return type lease, also known as sale and leaseback financial leasing
Generally referred to as leaseback, is a branch of simple financial leasing. It is characterized by the lessee and the leased object supplier is one, the leased object is not purchased, but the lessee in the lease contract before the signing of the equipment has been purchased and is being used. The lessee sells the equipment to the leasing company and then leases it back as a leased object, still having the right to use the object, but without ownership. The lessee enterprise through the leaseback can meet the need to improve its financial position, inventory of assets, can not affect their continued use of property in the case of physical capital into monetary capital.
4, leveraged financial leasing
Leveraged leasing is similar to the practice of syndicated loans, is a specialization of large-scale leasing projects with tax benefits of financial leasing, mainly led by a leasing company as the backbone of the company, for a mega leasing project financing. First set up an operating organization separate from the main body of the leasing company? Exclusively for this project to set up a fund management company to provide more than 20% of the total amount of the project, the remaining part of the source of funds is mainly to absorb the banks and the community's idle lobbying, using 100% to enjoy the benefits of low tax? The leverage of two to eight? s leverage to obtain huge amount of funds for the leasing project. The rest of the practice is basically the same as financial leasing, except that the complexity of the contract increases as a result of the wide range of issues involved. Because of the tax benefits, standardized operation, comprehensive benefits, safe rental recovery, low cost, generally used for aircraft, ships, communications equipment and large sets of equipment for financial leasing.
Financial leasing services industry-based seek quality development
Quality growth quality benefits more attention
Financial leasing industry after more than 30 years of development, the incremental increase in the scale of the business for all to see ****. In the process of development over the years, the leasing company's vision is mainly focused on expanding the scale of business.
Li Siming, Chairman of Shanghai Junchuang International Financial Leasing Co., Ltd. admitted that the development of leasing companies is often measured from the magnitude of its asset scale to compare, but the specific asset quality and income situation is seldom paid attention to. But in the present day, with the leasing risk is increasingly revealed, can no longer simply to scale? on heroes? , focusing on high-quality, sustainable industry development, to achieve quality growth, is gradually becoming practitioners of **** knowledge.
Gao Yuhui, General Manager of Guangzhou Yuexiu Financial Leasing Co., Ltd. pointed out that the development scale, quality and efficiency of financial leasing companies to achieve a balance, the pursuit of a quality growth. From the scale of the assessment to the quality of the assessment, is the leasing company to cultivate the internal strength of the road.
Zhao Hongwei, general manager of AVIC International Leasing Co., Ltd. also believes that the current industry risks have been generated, the entire leasing industry is facing transformation, leasing companies should pursue quality growth.
In order to promote the company's quality growth, focus on their own main business to realize ?
In order to promote the quality growth of the company, focusing on its own main business to realize? is not an effective path. It is understood that AVIC Leasing intends to increase its capital to 7.466 billion yuan, and the funds raised from the capital increase will be used entirely for the development of AVIC Leasing's main business. The person in charge of AVIC leasing said that in 2017, it will continue to increase its efforts in the aircraft leasing business, trying to make a breakthrough in the operational leasing. Ping An Leasing, on the other hand, is y engaged in the field of medical leasing, the overall asset size has exceeded 100 billion yuan, nearly one-fifth from the medical leasing business, health and health business line has also done the market first.
Quality operation business highlights the professional advantages
In fact, financial leasing is the financial sector and the real economy is the most closely linked tool, is a cross-border, cross-industry system innovation. The leasing industry is currently in a period of transition, seeking quality development is inseparable from the professional operation.
China's existing more than 7,400 financial leasing companies, a huge number of peer companies inevitably bring business homogenization, the pressure of competition in a single. Ltd., said Yin Hongjun, chairman and general manager, relying on specialization, differentiation and competition is the biggest advantage of the leasing company can survive.
For example, Huadian Leasing backed by the Huadian Group, relying on its specialized understanding of the power generation industry, new energy, photovoltaic, wind power and the traditional coal industry has a more accurate understanding of the effective completion of the coal leasing business; Guangrongda financial leasing in the preparatory process, it is clear that the company's position is to take the road of sustainable development of specialization, focusing on leasing in the field of automotive, relying on the leasing shareholders in the entire automotive industry chain. In addition to the leasing of the shareholders in the entire automotive industry chain of advantages, do a good job of supply chain finance, enhance the efficiency of the use of cars, for the real economy to inject vitality.
Fang Weihao, Chairman of Ping An Leasing, said that every leasing company should identify a niche market and make a feature or even lead in the niche market. It is understood that, as of the end of 2016, Ping An Leasing has 19 business lines, in which, in the medical and health care market segments to work hard, basically completed 15 billion yuan of business each year, serving the entire medical industry chain, including the manufacturing industry, medical equipment, distribution industry, medical institutions.
? Considering the individual segmentation needs, for the needs of different hospitals, different solutions need to be provided, to achieve specialized financial services. Fang Weihao said, Ping An Leasing is moving towards the industry, doing industrial leasing, is also another feature of its own specialized operation. Ping An Leasing is ready to invest 100 million yuan to 150 million yuan in the next three to five years, set up 100 imaging centers across the country, for non-public hospitals to provide leasing business, in order to solve the difficult to see the doctor checking, checking the price of this social problem to provide support.
Quality assets to build financing core competitiveness
In the new normal economy, China's economic development, transformation and upgrading needs financial services support, similarly, the development of the real economy needs effective financial tools, and financial leasing as a capital-intensive industry, just can meet these needs.
Wang Jialin, vice president of China Financial Leasing Enterprises Association, said that financial leasing companies help the actual production manufacturers to promote, but also provide support for the transformation and upgrading of the enterprise's equipment. In addition, compared to bank loans, financial leasing is bond financing, and also has the ability and willingness to take on greater and greater risks on certain specific industries, thus more often meeting the financing needs of real enterprises.
Therefore, financial leasing in for the entity enterprise?
There is no doubt that the financial leasing industry has a lot to offer.
Therefore, financial leasing is an important issue in realizing its own sustainable development while discovering high-quality assets and enhancing its financing capability.
At present, it is difficult for the entire financial leasing industry to obtain high-quality assets, and in the face of increasing competition, leasing companies must look for new products and new expansion modes. Fang Weihao pointed out that the ability to form high-quality assets is the main prerequisite for the healthy development of enterprises. In the construction of diversified financing channels, financial leasing companies need to actively explore and try to improve the ability to obtain good funds.
Among them, asset securitization is an effective way for financial leasing companies to solve financing problems. Some data show that in 2016, China's financial leasing companies *** issued 117 ABS, total issuance amounted to 115.037 billion yuan. It is understood that Ping An Leasing involves various types of varieties such as medium-term notes, short-term financing, ultra-short, perpetual bonds, etc. Through the integration of high-quality resources in the domestic and overseas markets, and the flexible use of indirect and direct financing methods, relying on a number of financing main bodies, it has realized deep cooperation with banks, trusts, insurance, interbank and other multi-channels in a variety of aspects such as cash, notes and fund management, and seeks to form a diversified source of high-quality assets.
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