1. Financial lease refers to a lease that substantially transfers all risks and rewards related to the ownership of an asset.
2. Financial lease refers to a transaction in which the lessor finances funds to provide the lessee with the necessary equipment, which has the dual functions of financing and material integration. It involves three parties, namely the lessor, the lessee and the supplier, including two or more contracts such as lease contract and supply contract.
3. according to the requirements and choices of the lessee, the lessor concludes a supply contract with the supplier to pay for the goods, and a lease contract with the lessee to lease the purchased equipment to the lessee for use. Most of the lease period is equivalent to the service life of the equipment.
4. during the lease period, the lessee shall pay the rent to the lessor in installments as stipulated in the contract. the ownership of the leased equipment belongs to the lessor, and the lessee shall have the right to use the equipment during the lease period. Upon the expiration of the lease, the equipment can be retained and purchased by the lessee, renewed or returned to the lessor.
5. In the construction machinery industry, the financial leasing business has also been introduced to China in recent years. It is a sales method in which the lessor purchases the leased object from the supplier and then rents it to the lessee according to the lessee's choice of the supplier and the leased object.
Extended information:
1. A lease that meets one of the following conditions is a financial lease: at the expiration of the lease, the ownership of the leased assets is transferred to the lessee, and the lease period is the majority (75% or more) of the service life of the assets, and the minimum payment for the lease during the lease period is greater than or basically equal to the fair value of the assets on the lease start date.
2. Financial leasing is a new financial industry that integrates financing and financial services, trade and technological innovation. Because of the combination of financing and finance, the leasing company can recycle and dispose of the leased property when there are problems, so the requirements for corporate credit and guarantee are not high when handling financing, so it is very suitable for financing of small and medium-sized enterprises.
3. Financial leasing in China is the product of the reform and opening-up policy. After the reform and opening up, in order to expand international economic and technological cooperation and exchanges, open up new channels for utilizing foreign capital, and absorb and introduce foreign advanced technology and equipment, China International Trust and Investment Company introduced leasing in 198. In April 1981, the first joint venture leasing company, China Dongfang Leasing Co., Ltd. was established, and in July of the same year, China Leasing Company was established. The establishment of these companies marks the birth of China's financial leasing industry.
4. In addition to flexible financing methods, financial leasing also has the characteristics of long financing period, flexible repayment methods and low pressure. The term of funds enjoyed by small and medium-sized enterprises through financial leasing can reach 3 years, which is much higher than the term of general bank loans. In terms of repayment, SMEs can choose to repay by installments according to their own conditions, which greatly reduces the short-term capital pressure and prevents the fragile capital chain of SMEs from breaking.
5. Although financial leasing is very suitable for SMEs to solve their own financing problems because of its low threshold and flexible form, it is not suitable for all SMEs. Financial leasing is more suitable for production and processing small and medium-sized enterprises. Especially those small and medium-sized enterprises that have good sales channels and broad market prospects, but have temporary difficulties or need to buy equipment in time to expand production scale.