Direct rental:
It refers to the transaction in which the lessor purchases the leased item from the seller according to the choice of the seller and the leased item, and provides it to the lessee for collecting the rent from the lessee. It gives the lessee the right to acquire, use and benefit the leased property during the lease contract condition on the condition that the lessor retains the ownership of the lease and collects the rent. "This is the most typical form of financial leasing.
Operating lease:
It is a form of leasing that corresponds to "financial leasing". To be precise, it is the lease form in which the lessor bears the risks and benefits associated with the lease item. Companies using this type of leasing are not intended to ultimately own the leased property and are not reflected as fixed assets in their financial statements. In order to avoid equipment risks, companies may need off-balance sheet financing, or need to use some tax policies, and are willing to adopt operating leases.
Sale and leaseback:
The leaseback business refers to the lease form in which the lessee sells the own item to the lessor, and at the same time signs a lease contract with the lessor and then rents the item back from the lessor. The leaseback business is a special lease method in which the lessee and the seller are the same person. This approach is conducive to the realization of existing assets, and can also be used to raise funds for equity, mergers and acquisitions.
Entrusted lease:
The entrusted leasing business means that the lessor accepts the client's funds or leased subject matter, and according to the client's written entrustment, handles the leasing business with the lessee designated by the principal. During the lease period, the ownership of the leased subject matter belongs to the principal, and the lessor only charges the handling fee and does not bear the risk. The leasing company as the trustee and the nominal lessor mainly undertakes the investigation and recommendation of the lessee, the specific operation of the leasing project and the long-term follow-up management of the leasing project. This type of investment provides a new way of investing for customers with money or idle equipment.
Transfer lease:
The sub-leasing business refers to the multiple leasing business with the same object as the subject matter. In the sublease business, the lessee of the previous lease contract is also the lessor of the next lease contract, called the sub-lease. The sub-tenant rents the leased item to other lessors and then subletes it to a third party. The sub-tenant aims to collect the rent difference. The ownership of the leased item belongs to the first lessor.
Sublease can take advantage of different lessors, diversify risks, or utilize tax policies in different regions and industries.
Leverage rental:
Leverage leasing is basically a form of tax deduction. The lessor invests 20%-40% of the total purchase price of the leased property, and most of the remaining funds are borrowed from the bank in the name of the lessor, and the leased property is purchased and leased to the lessee. The lessor must use the lease as collateral and transfer the relevant interest to the lender.
The structure of this type of leasing is more complicated, but the advantage is that the lessor can own the leased property and enjoy the same tax treatment as the full investment of the leased property, and transfer part of the tax reduction to the lessee by lowering the rent. Allowing tenants to obtain lower financing costs than other methods.
Leverage leasing is based on the physics principle of leverage, that is, through a fulcrum, with a longer force arm, a larger weight can be lifted with a smaller force. In leveraged leasing, the borrowing component is leveraged, and through the role of this financial leverage, and making full use of the tax benefits of the lessor’s country, the parties to the transaction, especially the lessor, lessee and lender, can obtain more than the average lease. Economic benefits. Leverage leasing is generally suitable for rental projects with large amounts such as aircraft leasing.
Divided into leases:
Dividing into leases is a new form of leasing that combines certain characteristics of the investment. When determining the rent level between the leasing company and the lessee, the fixed or floating interest rate is not used as the basis for determining the rent, but the rent is determined by the production capacity of the leased equipment or the income of the enterprise and the leased equipment. The amount of equipment used is large or the profits associated with the leased equipment are high, and the rent is high, and vice versa. The rent for this type of lease is called "continuous rent."
