Definition of financial leasing
Financial leasing, is a transaction in which the lessor purchases the leased object from the seller according to the lessee's choice of the seller and the leased object, provides it to the lessee for use, and collects rent from the lessee. It is conditional on the lessor retaining ownership of the leased object, the right to dispose of it, and the collection of rent, so that the lessee acquires the right to partially or fully possess, use and benefit from the leased object during the term of the lease contract. It is a lease that substantially transfers all the risks and rewards associated with ownership of an asset. Ownership may or may not ultimately be transferred. According to AS 21 - Leases, a lease shall be recognized as a finance lease if it meets one or more of the following criteria:
1. Ownership of the leased asset is transferred to the lessee at the end of the lease term.
2. The lessee has an option to purchase the leased asset, and the purchase price contracted for is expected to be substantially less than the fair value of the leased asset at the time the option is exercised, so that it is reasonably certain at the commencement date of the lease that the lessee will exercise such option.
3. Even though ownership of the asset does not pass, the lease period accounts for the majority of the useful life of the leased asset.
4. The present value of the lessee's minimum lease payments on the lease commencement date is almost equal to the fair value of the leased asset on the lease commencement date; the present value of the lessor's minimum lease receipts on the lease commencement date is almost equal to the fair value of the leased asset on the lease commencement date.?
5. The leased asset is of a special nature, and if it is not greatly modified, only the lessee can use it.
Financial Leasing Business Advantage Case and Financial Leasing Example
(A) Financial Leasing Business Advantage Case Analysis
Example 1 (Advantage - Enjoying the Tax Preferences): Enterprise A acquires machinery and equipment worth 20 million yuan. The original depreciation period of 8 years, annual depreciation of 2.5 million yuan. Lease term of 4 years, accelerated depreciation of 2.5 million yuan per year, the annual tax deferral 250 * 33% = 825,000 yuan.
Example 2 (Advantage - Maintaining Liquidity): Business B owns a piece of production equipment with an original value of $60 million. Now the enterprise in order to increase the liquidity, the ownership of the equipment will be transferred to the financial leasing company, and then in accordance with the original value of the 60% discount lease back, the lease amount of 36 million yuan, the period of 3 years. enterprise B still owns the right to use the equipment, and access to 36 million yuan of liquidity, in 3 years quarterly return, each time only need to return 3 million yuan of principal and the corresponding interest rate of the lease, the future of the enterprise B does not cause greater pressure on cash flow .
(B) bank lease cooperation financial leasing project example
Example 3 (bank lease cooperation - grafting): C enterprises in the D bank credit limit of 80 million yuan, the bank has issued a project loan of 60 million yuan, the liquidity loan of 20 million yuan. The company's credit line is 80 million yuan. Enterprise technological transformation project completed and put into production after the lack of liquidity, affecting the efficiency. Enterprises will be 90 million yuan of equipment at a price of 50 million yuan transferred to the financial leasing company, access to financial leasing payments of 50 million yuan, after the return of the bank project loan of 50 million yuan. In order to support the development of the enterprise, the bank increased working capital loan of 50 million yuan. Financial leasing company to the bank to apply for financial leasing loans of 40 million yuan, Bank D after examination to be issued.
Example 4 (bank leasing cooperation - lifting geographical restrictions): has been the key support object for the F Bank of the E enterprise for the development of the needs of the neighboring provinces in the acquisition of land to set up a branch factory, the purchase of equipment 50 million yuan. Because of the plant independent accounting and in the provinces, F Bank can not loan, that is, to the financial leasing company for the introduction of the plant by the issuance of financial leases of 30 million yuan. The financial leasing company then applied for a loan of 25 million yuan, Bank F was issued after examination.
Example 5 (Bank Leasing Cooperation - Guaranteed Loan): G enterprise in the financial leasing company applied for a leasing project, the financial leasing company on the project to apply for a loan to Bank H. G enterprise for the loan to provide security. At the same time, according to the agreement, G enterprise will each period of rent back to the leasing company in the special account opened by Bank H, special for loan repayment, the financial leasing company shall not be diverted for other purposes. For G enterprise, the guarantee for the loan did not expand its own risk; for Bank H, captured the project's cash flow back, increased protection.
Example 6 (Bank Leasing Cooperation - Pledge Loan of Lease Receivables): The financial leasing company pledges the lease receivables under a leasing project with Enterprise I to Bank J to obtain a loan. Prior to the signing of the pledge contract, the financial leasing company notified Enterprise I of the pledge of the lease receivables and requested Enterprise I to pay the future rent back into the special account of the financial leasing company in Bank J, specifically for the return of the pledged loan. Bank J obtained a stable repayment guarantee, the financial leasing company revitalized the assets in the account and Enterprise I did not add any other additional risks as a result of the pledge.
(3) Examples of financial leasing projects in the printing industry
Example 7: xxxxx printing enterprise, founded in 1999, registered capital of 3 million yuan, total assets of more than 13 million yuan, the net assets of about 8 million yuan, the annual sales of 12 million yuan, 1.8 million yuan of profit. The enterprise plans to introduce a Japanese Mitsubishi production of four-color four open offset printing machine, worth about 3.6 million yuan, plans to invest 1/3 million of its own funds. With the scale of the enterprise, the project is difficult to obtain bank loan support in the local area, so it turns to seek financial leasing. After the enterprise provided the necessary information, the company through the information analysis as well as on-site inspection, that the enterprise foundation is good, stable source of printing business, asset quality is good, no major defects in the financial situation, the current cash flow has been able to pay the rent in full, in line with the leasing company's selection criteria for the printing enterprise, so the company signed a contract with the enterprise, the implementation of the project. The enterprise finally with the first 1.4 million yuan of own funds invested in three years of accumulated interest costs of 73.97 million yuan, the introduction of 3.6 million yuan of printing equipment in the form of monthly rental payments.
(D) technological transformation equipment leasing project examples
Example 8 : × × × × Gas Co., Ltd., in the construction of the "gasification station" in the process of encountering financial problems. Later, the enterprise used the financial leasing method, to the Gold Coast Enterprise Development Co., Ltd. leased the community gasification station equipment, the lease period of 2 years, pay rent quarterly. In this way, the company only paid 240,000 yuan of the lease deposit, the financing of 1.2 million yuan of equipment, investment is not much but to ensure the development of the enterprise. After the expiration of the lease, the enterprise then pay 100 yuan "transfer fee", you can get the property rights of the equipment.
Example 9: ×××× Technology Co., Ltd. is engaged in the sale of advertising equipment and consumables and production business, due to the expansion of the scale of the urgent need to add equipment, but suffering from capital turnover difficulties, decided to revitalize the company's operations through the way of financial leasing. The company to the "Gold Coast" financial leasing 2.4 million yuan of assembly line production equipment, the lease period of three years, half a year to pay a rent, and raised 20% of the amount of financing as a lease deposit. Both to ensure the development of the enterprise, in the capital problem and did not "hurt the bones".
Example 10: × × × × enterprise basic situation: the company was founded in 1991, the registered capital of 5.18 million yuan. Now the local industrial enterprises ranked 20, with total assets of 150 million yuan, asset-liability ratio of 46%, completed in 2005 industrial output value of 150 million yuan, specializing in the production of various types of automotive shock absorbers. The products are mainly exported, accounting for 65% of the sales. We have established a partnership with Iran FS Company, which completed 80 million RMB in 2005, and have signed a project of 3 million shock absorbers (15 million USD) in 2006, which has a very promising market prospect. With the production scale and the number of employees increased exponentially, the previous management mode has not adapted to the requirements of the development of the enterprise, so the company decided to the original production line for IE engineering design and lean production transformation, incorporating capital of 15 million yuan.
×××The enterprise this technical transformation choose the way of financial leasing, the reason: First, the project put into production after the increase in production capacity, export-oriented sales increased receivables and inventory turnover time, resulting in increased demand for liquidity of the enterprise. Secondly, the enterprise technical transformation equipment has been purchased on its own, and the money occupied by the equipment can not be solved from the bank, resulting in further tightening of the enterprise liquidity; thirdly, the long-term funds incorporated through leaseback, not only to solve the liquidity gap, but also to solve the problem of short-term borrowing and long-term use of the enterprise can be used to generate the benefits of the new project to be returned in installments, the repayment of the pressure is small. Fourth, the use of financial leasing to introduce technological transformation equipment can enjoy three years of accelerated depreciation of the national tax incentives to achieve the digestion of profits, increase the accumulation of enterprise funds for the purpose of further expanding in the production.
After the assessment of the enterprise's technical transformation project, according to the "deposit a rent three" mode of operation, the total size of the lease 20 million yuan, the enterprise deposited 5 million yuan deposit, the net lease put 15 million yuan. Through the lease, the enterprise this technical transformation project not only updated equipment, expand the production scale, enhance market competitiveness, and solve the liquidity, and at the same time in accordance with the leasing tax incentives, accelerated depreciation amounted to 5 million yuan per year, can be absorbed by the enterprise each year to increase the profit of 4 million yuan.
(E) medical equipment leasing project examples
Example 11: × × × × × tertiary hospitals, 500 beds, facilities, configuration, full functionality, with nearly a billion dollars worth of advanced medical equipment, annual outpatient clinic volume of 500,000 people, with an annual business income of 150 million yuan, revenue and expenditure balance of 1 million yuan, the debt ratio of 43%, the monetary capital of 90 million yuan. Monetary funds of 90 million yuan, decided to introduce an international brand company's 1.5T nuclear magnetic **** vibration equipment, the price of 12 million yuan, but asked to pay for the equipment in installments. Recommended by the equipment supplier, to the leasing company put forward an application for financial leasing.
The leasing company after a site visit, and discussions with relevant personnel, request for quotations, put forward the leasing program, discussed and approved by the hospital, the leasing company after the relevant procedures approved the program, that is, and the hospital signed the "Lease Contract", the contract agreed that: the hospital first pay part of the deposit to the leasing company, and then in the leasing period of equal monthly payments of rent, the end of the leasing contract, the ownership of the equipment can be transferred to the hospital. At the same time, the leasing company and equipment suppliers signed a "contract of sale", the contract agreed: the leasing company in accordance with the equipment installation process of payment, the manufacturer to undertake after-sales service and other matters.
This is a typical case of financial leasing of medical equipment involving three parties. How to carry out the lease, can be grasped by the following six points:
1, the source of medical equipment leasing project?
There is the sale and purchase of equipment, there is leasing services. Most medical equipment leasing program is recommended by the equipment supplier, a few are old customers self-referred or recommended. As the manufacturer wants to receive full payment for the equipment as soon as possible, if the hospital is unable to meet its payment terms and wants to use the equipment as soon as possible, there is a need for financial leasing.
Financial leasing is a financial intermediary services, itself does not have the function of product marketing.
2, the hospital's needs
××××Three A hospital revenue is good, why there is still demand for leasing?
As we all know, competition and development are the biggest issues facing hospitals. For tertiary hospitals, although talent is not a problem, a lot of money is needed to improve the medical environment, increase the number of beds and introduce new equipment. The main sources and uses of funds for the hospital are: 1, operating income, due to the hospital costs and expenses, the hospital's balance is less than 1% of its total income, mainly for personnel costs and expenses and part of the liquidity; 2, financial allocations, the state investment is very small, only enough to make up for the salaries of retired staff; 3, bank credit, short-term mainly to solve the liquidity of the short term, the medium and long term is mainly used for the construction of the infrastructure, with the control of amount; 4, finance leasing, for equipment and equipment, the main source of funds for the hospital. 4, financial leasing, for equipment renewal.
The benefits of hospitals using financial leasing to introduce equipment: 1, does not take up the credit line; 2, the down payment pressure is light, the opportunity cost is low; 3, the early application of new equipment to carry out new projects to increase the hospital's comprehensive income; 4, through the assessment of the benefits of the new equipment (through the rent), to strengthen the role of supervision of the functional departments to enhance the management of the incentive mechanism.
3, the basic judgment of the medical equipment leasing program?
Not all medical equipment can be used as leases, and not all hospitals can be the lessee. Leasehold should choose a well-known brand, high value, good after-sales service, non-consumptive, long service life, and can be measured and charged for diagnostic and treatment equipment. The lessee should choose hospitals that are ranked, have greater influence and radiation in the local area, have higher credibility, have little debt, and have stronger overall strength. In addition, the strength of the department of the specific project, technical support, professional needs, as well as the project's new revenue is also the basis for examination.
4, lease program design?
Both to meet the standards of the leasing company, but also try to meet the requirements of the hospital. The arrangement of different lease terms and flexible payment methods can reduce the hospital's repayment pressure and maximize the hospital's performance. In addition there should be an agreement on the insurance terms of the leased property.?
5, medical leasing project risk prevention of the main content?
(1) the lessee risk, the hospital has sufficient debt repayment ability? There is no intentional default motives? And whether the amount of project financing to match the size of the hospital.
(2) Project risk, does the leased equipment meet SDA standards? Are there any approvals? Whether it can enhance the overall efficiency of the hospital? Can the expected benefits be obtained?
(3) interest rate risk, mainly to prevent the People's Bank of China interest rate adjustment during the lease period to our rental changes, generally agreed in the lease contract.
6, exit mechanism set
Once the project fails or other disputes lead to the leasing company to withdraw from the contract, there should be legal protection.
(F) public transportation vehicle leasing project example
Case 12: × × × × bus company, due to the need for bus vehicle renewal, in 2003 to the leasing company to apply for a financial lease of 30 million yuan, the lease term of four years. × × × × bus company in 2002, total assets of 182.58 million yuan, fixed assets of 111.94 million yuan, liabilities of 86.12 million yuan. 2001 realized revenue of 88.14 million yuan, profit of -250,000 yuan. ×××x x x bus company in accordance with the requirements of the overall development of the new five bus routes in 2002, the configuration of clean dual-fuel environmentally friendly vehicles 160; according to the status of the existing vehicles, update the clean dual-fuel environmentally friendly vehicles 100 units.?
Project analysis × × × × bus company is a local city bus, although the local economy is not yet sufficiently developed, but can be relatively more support from the local government; bus industry is a stability industry, × × × × bus company's operations in the local monopoly operations, uncertainty factors are relatively few; bus company's vehicle renewal continuity, but its one-time payment of the acquisition of a weaker, generally pay in installments, and a stable cash flow, a more stable cash flow. and has stable cash flow, which is more suitable for the operation of financial leasing. The analysis of the debt ratio, debt structure, profit situation, cost composition of the xxxxxx bus company, xxxxxx bus company is a normal operation of the bus company.
Enterprise solvency analysis based on the analysis of the calculation of A, the new vehicle annual profit of about 1.8 million yuan; B, according to the price of gasoline and natural gas at the time of the price ratio, its through the renewal of the vehicle to gas instead of oil can save costs of about 5 million yuan; C, the measured annual depreciation of the project 3.2 million yuan. Through the above analysis can be seen, the new project monthly cash inflow of about 830,000 yuan, the lease amount of 30 million yuan, the monthly repayment amount of about 710,000 yuan, x x x x bus company has the ability to repay.?
At the same time, the lease on its current cash flow analysis and calculation, even if not on the new project, x x x bus company monthly net cash inflow of 1.27 million yuan, has enough capacity to withstand 30 million yuan of lease repayment.
Project operation based on the above analysis, the leasing company agreed to provide 30 million yuan for the × × × × bus company to provide financial leases for a period of four years. Since × × × × bus company can not provide other security units, × × × × bus company agreed to use its 15 bus line operating rights as a guarantee. The project has so far normalized the return of rent for 42 periods and was successfully concluded in June 2006. ×××The company has accelerated the speed of its vehicle renewal through financial leasing, and 80% of its buses have realized gas instead of oil. In the case of the recent substantial increase in oil prices, the company has saved a large amount of costs due to the preparations made in advance, so that it is able to maintain a better operation without the need to substantially increase the public transport fares, and it has produced very good economic and social benefits.