Introduction: Financial lease is also called financial lease or net lease. Most lessees are leasing companies affiliated with financial institutions (banks, insurance companies, trust and investment companies, etc.). ). So, how does the financial leasing company operate?
1. What is a financial leasing company?
First of all, it should be clear that financial leasing is different from usury, neither a bank nor a loan company, nor an investment company. Why do you say that? In fact, the business orientation of financial leasing companies is asset management institutions serving finance, trade and industry. The main business of financing companies is to provide services for more technologies in trade. Although it also involves funds, the main line is to serve investors, rather than the venture capital business in which all its own funds are occupied and locked in the project.
It can be said that financial leasing refers to a lease that essentially transfers all or most of the risks and rewards related to asset ownership.
2. What are the types of financial leasing companies?
Financial leasing companies are divided into financial leasing and non-financial leasing. Among them, financial leasing is mostly approved by CBRC, including bank recruitment and bank construction. Non-financing lease should be decided according to whether it is foreign or domestic. If foreign investment is approved by the Ministry of Commerce, if domestic investment is jointly approved by the Ministry of Commerce and State Taxation Administration of The People's Republic of China.
3. What is the business of the financial leasing company?
The business of financial leasing companies can be divided into two categories, one is direct leasing and the other is leaseback.
Direct lease means that the lessee takes the equipment to be purchased as the lease item, which is more like installment payment, but the ownership belongs to the leasing company during the lease period. Leaseback means that the lessee uses the existing equipment as the lease object, which is similar to mortgage loan in form.
Although it has no ownership during the direct lease period, it is regarded as a purchase for tax purposes and can be depreciated and deducted. The equipment seller issues a VAT invoice to the leasing company in full, and the leasing company issues an invoice to the lessee, including the equipment and interest. Lease-back invoices are complicated, and State Taxation Administration of The People's Republic of China has special regulations. Although there are sales and repurchase in form, in order to support financial leasing, the state currently only taxes the interest part of leaseback. The practice of most companies is to issue receipts for principal and invoices for interest and service fees.
4. Why do so many bosses choose to invest in financial leasing?
The answer to this question is obvious. Of course, the leasing method of financial leasing can bring direct benefits to the lessee.
1, decide the financing channel.
2. Improve cash management.
3. It is conducive to the technical upgrading of equipment.
4. Off-balance-sheet financing is available.
5. Accelerated depreciation is allowed.
6. be flexible.
7. Convenience
Summary:
In the above small class, it seems that you must have some understanding of financial leasing. Don't misunderstand people engaged in the financial leasing industry.
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