For enterprises that can't get a lot of money in a short time, financial leasing is a good method. Through leasing, the fixed assets will be owned by the enterprise after expiration. Generally, enterprises that adopt this method don't want to occupy a lot of money or can't come up with so much money in a short time.
Minimum lease payment refers to all kinds of payments that the lessee should pay or may be required to pay during the lease term (excluding contingent rent and performance costs), plus the residual value of assets guaranteed by the lessee or related third parties. However, if the lessee has the option to purchase the leased assets, the purchase price is expected to be much lower than the fair value of the leased assets when exercising this option, so it can be reasonably determined that the lessee will exercise this option on the lease start date, and the purchase price should also be included. Contingent rent refers to the rent whose amount is not fixed and is calculated according to other factors other than the length of time (such as sales percentage, usage, price index, etc.). ). Performance fees refer to all kinds of use fees paid for the leased assets during the lease term, such as technical consulting service fees, personnel training fees, maintenance fees, insurance fees, etc.
The present value of minimum lease payment means: minimum lease payment * discount rate.