Leasing in simple words. Car leasing - in simple words about what it is What leasing is in simple words for individuals

You will learn what leasing is and what leasing companies do, what equipment a businessman can lease, and what is more profitable - leasing or credit

Greetings to the readers of HeatherBeaver magazine! Regular author of the resource, economist, Eduard Stembolsky is with you again.

Today we will talk about leasing, a financial service that is becoming increasingly important in our country.

The article will be useful for aspiring entrepreneurs, car owners and all those who want to keep up with the times and keep abreast of popular trends in finance and business.

1. What is leasing - definition

The financial term “leasing” comes from the English word “leasing” and is literally translated as “rent”.

Indeed, when performing leasing transactions, the property is transferred for temporary use, but unlike a classic lease, the user has the right to subsequently purchase the leased object for permanent possession.

This is the main fundamental difference between leasing and rent: there are other nuances that we will definitely talk about in our article.

The official definition is as follows:

Leasing- this is a type of investment activity aimed at the owner transferring his property to individuals or legal entities according to an agreement.

The property is transferred by the lessor for a certain period of time for a fee agreed in advance and with the right of subsequent repurchase of the property by the lessee. All conditions for the transfer of property, its insurance and service life until full redemption are specified in the leasing agreement, which is signed by both parties.

It should be said that leasing does not always end with the purchase of the property: sometimes the recipient returns it to the owner, as in a regular lease.

Objects and subjects of leasing

Let's consider what objects (or items) can be leased:

• equipment;
• structures;
• building;
• enterprises;
• transport;
• other property in which the recipient is interested.

Almost any owned property can be leased or leased. The exceptions are plots of land, natural objects, as well as property for which the law provides for a special nature of treatment (for example, weapons).

In our country, leasing of equipment and cars is especially popular.

Many companies at the initial stage of their activities come to the conclusion that it is more profitable for them to take out property on credit with subsequent redemption than to buy it through a one-time purchase and sale transaction.

This allows you to reduce costs and purchase equipment and machinery in the shortest possible time.

Read about how to get it in our separate article.

Leasing subjects:

• lessee (also known as client - an individual or legal entity interested in receiving the leased asset);
• lessor (bank, company, commercial or public organization);
• insurer (company that insures the transaction);
• supplier (equipment seller, manufacturer, dealer).

It happens that the lessor also acts as a supplier of property, but more often it is a commercial bank, a credit institution or the leasing company itself. The lessor can be not only a legal entity, but also an individual leasing personal property.

An insurance company is an optional but desirable participant in leasing operations. Typically the insurer is a partner of the recipient or lessor. It is involved in order to insure property, transport, financial and other types of risks associated with the transaction.

Practically all large credit organizations carry out procedures of this type, but not directly, but through specially created “subsidiaries” - subsidiaries.

Typically, the first part of the name of such divisions coincides with the name of the parent company (bank). Example - Avangard-Leasing, PromSvyazLeasing, VTB Leasing, etc.

Practical meaning

What is the practical meaning of leasing? It's simple: the recipient does not pay immediately, but makes payments within the period established by the agreement, while the property actually becomes the property immediately after making the down payment.

It is clear that the transaction is concluded only if there is mutual benefit between the recipient and the lessor. Leasing agreements are variable and diverse, and debt repayment schedules are flexible.

There are the following types of payments:

• regressive payments- payment monthly with a decreasing amount;
• annuity payments- with the same amount of payments;
• seasonal payments- tied to the seasonal characteristics of the recipient’s business.

Equipment taken into use can be immediately put into operation, but until it becomes your property, property tax is not deducted from it - this is another advantage of leasing operations.

2. Main types of leasing – TOP 3 popular types

There are several types of leasing, but the most popular types in Russia are car leasing, equipment leasing and financial leasing.

Type 1. Car leasing

Individuals and legal entities can purchase a car on lease. The benefits of leasing compared to a car loan are the subject of a separate article, but here we will talk about the prospects for this type of vehicle purchase.

Car leasing is, in essence, renting a car, only at the end of its term, you do not return the vehicle to the owner, but keep it for yourself. For our country, this is a relatively new way of purchasing a car, but in the USA and Europe this method has been in constant demand for decades.

For leasing organizations, car leasing is the least risky area of ​​lending, since a car is a highly liquid property that can be sold on the secondary market.

In addition, cars must be registered with government agencies and, if necessary, they can be easily found. The likelihood of non-payments and return of the car is much lower, since few people want to part with the car after several months of successful operation.

If you don’t need to buy, but rather, you can use the advice from one of our previous publications.

Read more about it in a separate article in our magazine.

View 2.

Functional and modern equipment increases the production performance and competitiveness of the enterprise. However, the company does not always have the working capital necessary to purchase equipment.

The result is that a significant part of the country’s enterprises operate on outdated (morally or physically) equipment.

In such a situation, the simplest and most cost-effective way to solve the problem is to lease equipment with a subsequent right of purchase.

The advantages of this option are quite numerous:

• it is easier than a loan, which requires collateral and an impressive package of documents;
• this is less risky for lessors (since in case of non-payment, companies have the right to take back the property at any time);
• this allows you to update the company’s funds and provides it with favorable tax conditions;
• this is a quick way to upgrade production capacity without a one-time investment.

This method of acquiring machinery and equipment is advisable to use in cases where the period of wear and tear of objects is quite long. Otherwise, when the contract expires, the acquisition of property will become meaningless, since by that time it will already be outdated.

Another nuance is that highly specialized equipment is in low demand, so if the contract is terminated or returned, such property will be difficult to sell.

Therefore, companies that provide specialized equipment for use may require the recipient to make a deposit or an advance payment: these amounts are not refundable in case of cancellation of the transaction.

Type 3. Financial leasing

This type is an operation to acquire property with its subsequent putting it into temporary use for a long period and depreciating all or most of its value.

It sounds complicated, but in reality everything is simple: the lessor purchases equipment, transport or another asset, rents it out for use, returns the cost of the property and gains additional profit from the transaction.

The financial leasing transaction has a tripartite nature. The recipient submits an application to the lessor, who buys the property from the supplier and transfers it to the addressee.

As a result of the transaction, the lessor compensates for losses and makes a profit, and the receiving party acquires equipment or other property on a long-term lease with subsequent purchase.

A characteristic feature of such an operation: the leased object is initially intended to be transferred to the recipient. After the expiration of the payment period, the subject of the agreement becomes the property of the recipient, but before that it is formally in the possession of the lessor.

Other types of leasing

Commercial structures use leasing to reduce the tax burden. Sometimes the lessor simultaneously acts as a lessee: this method is used by enterprises when there is a lack of working capital and is called leaseback .

Another variety - operational (service) leasing , in which the lessor's expenses for the acquisition and maintenance of objects are not covered by payments during the term of one contract.

There is a classification according to the degree of risk:

• unsecured lease when the recipient does not leave the partner any additional guarantees of fulfilling his part of the contract;
• partially secured– with insurance;
• guaranteed when risks are distributed among several participants acting as guarantors of the recipient.

For clarity, we have combined popular types of leasing into a table and indicated the characteristic features and advantages of each of them:

3. How leasing works - 5 main stages of a leasing operation

Although a leasing transaction is considered a simpler and more accessible financial transaction than a loan, its execution requires compliance with certain rules. A legally competent leasing operation is carried out in several stages.

Stage 1. Selecting a leasing object and company

The choice of object is up to the recipient. If this is an enterprise that wants to take out equipment on a long-term loan with subsequent purchase, then the financial department is looking for the most profitable option.

If this is a private person who intends to purchase a vehicle, then he will have to choose the subject of the leasing operation and the lessor independently, focusing on issues of economic feasibility and personal preferences.

We will provide more detailed information on how to choose a transaction partner in a separate section entirely devoted to this issue.

Stage 2. Study of leasing conditions and preliminary approval

After selecting an organization that provides the necessary services, the recipient makes a call to the company and conducts preliminary negotiations regarding the terms of the upcoming transaction.

The most important points need to be clarified:

• down payment amount;
• amounts of regular payments;
• payment schedule;
• conditions for completing the transaction.

If the format is suitable, the recipient submits the application and prepares the necessary documents. The lessor then analyzes the information provided by the potential partner. The most important indicator is the client’s financial condition.

Stage 3. Drawing up a leasing agreement

The following documents are required for the transaction agreement::

1. Application for leasing.
2. Financial statements for the last four reporting periods.
3. Bank reference about the company's account turnover during the last year.
4. Information mail About company.
5. Copy of the passport head of the company.
6. Supplier agreement document equipment (vehicles or other property).
7. Property insurance leasing

This is just a basic list: the leasing company may require other documents and certificates depending on the specifics of the contract.

Stage 4. Down payment and delivery of property

After signing an agreement on the transfer of the object, the receiving company makes a down payment, takes possession of the leased asset and uses it in business activities. The supplier company is responsible for the supply of equipment or other property.

During the term of the transaction, ownership remains with the lessor (a fundamental feature of a leasing transaction), but the client can use the object for his own purposes, making payments as agreed.

Stage 5. Operation of the facility and acquisition of ownership

If the recipient violates the terms of the agreement or the payment schedule, the lessor can withdraw the object as an owner and sell it on the secondary market. The client is responsible for damage, failure, or breakdown of equipment, vehicles, or other property.

If payments are made regularly throughout the term, then once the entire amount is repaid, ownership passes to the receiving company. The profit received by the client during the operation of the equipment is his property.

4. Leasing or credit - what is the difference and what is more profitable during a crisis?

The fundamental difference between a loan and leasing is that in the first case the item becomes the property of the client immediately, and in the second case it remains in the possession of the lessor until the end of the contract.

In addition, when applying for leasing, the client is not required to provide a credit history, although the financial condition of the company is necessarily studied by the party making the decision to issue the property.

Which makes more sense from a financial point of view?

In conditions of economic instability, experts give preference to leasing.

The advantages of leasing are especially obvious when using equipment or vehicles:

• The down payment for leasing is usually 5-10% lower;
• leasing discounts are provided in 80-90% of transactions;
• no deposit required for leasing;
• the recipient has tax benefits;
• leasing transactions are carried out faster and require less paperwork.

Leasing is beneficial for both companies purchasing property on a long-term lease and individuals.

Let's look at the pros and cons of this financial instrument using a specific example - leasing a car.

Example

The calculation was made by the leasing company. The leased item is a popular Toyota car at a price of 690 thousand rubles.

At first glance, the benefit is obvious: the monthly payment for leasing is 38% less. However, there is a nuance - such conditions are offered by lessors only if the car is returned to the company after the expiration of the leasing period (three years).

If you lease a car with subsequent purchase, the transaction will cost 1,033,400 rubles versus 826,000 when taking out a car on credit.

Thus, leasing will be beneficial to those who take a car for temporary use and then upgrade the car to a more modern model.

Evgeny Smirnov

Bsadsensedinamick

# Business nuances

Details about what leasing is

The main advantage of leasing is that at the end of the contract, the object becomes the property of the lessee.

Article navigation

• The essence of leasing
• Leasing subjects
• How does leasing work?
• Benefits of leasing
• Benefits for leasing companies
• What is more profitable: leasing or credit?
• Disadvantages of leasing
• Basic requirements of lessors
• Subject of leasing
• Economic importance of leasing

In a difficult economic situation, when banks require large commissions and interest for loans provided, and leasing as a type of financial transaction is not suitable for a number of reasons, enterprises are increasingly turning to leasing companies. The main goal is to purchase equipment, vehicles or real estate on more favorable terms.

The essence of leasing

In simple terms, leasing is the rental of property, at the end of which the lessee becomes its owner. In order to understand the economic essence of the definition of leasing as accurately as possible, you should consider the scheme using a simple example.

Let's say the company does not have enough funds to purchase equipment. You can get a loan with high interest rates, or contact a leasing company. The latter conducts an assessment and makes a decision on cooperation. If it is positive, then the entrepreneur receives the purchased property for rent under a special contract.

A standard leasing agreement stipulates that the leasing recipient pays a certain amount monthly, as for rent. But after the expiration of the predetermined period, you can redeem the property by paying the remaining amount.

If the owner of the property (equipment, transport or real estate) is also the lessor, then two parties are sufficient. Often another partner is added to the list - an insurance company, especially when it comes to expensive equipment.

The main purpose of leasing for the company receiving it is to expand production and modernize technology, which entails receiving greater profits in the future. The benefit of the leasing company is formed from the difference between the current value of the asset and its price after financial leasing transactions.

The lessor's transaction costs include the cost of the property that is leased and interest on the loan if borrowed funds were used to purchase the property. The recipient's costs consist of the amount of depreciation of the property during the validity of the contract, commissions, fees for borrowed loan funds and additional services from the lessor. In addition, VAT for leasing services should be taken into account.

The commission allows the lessor to cover costs and make a profit. That is why he is interested in providing leasing services. The recipient should compare the costs of the leasing operation with the possible profit from this cooperation.

After the expiration of the contract, the property can be purchased both at the market price and at the residual value. This point must be specified in the contract.

Leasing subjects

Leasing subjects are:

• lessee - an individual or legal entity who receives property for use for a certain period of time with the right to purchase it in the future;
• lessor – the party that buys equipment and leases it;
• seller – a company selling valuable property.

The lessor can be either a legal entity or an individual if it is registered as an individual entrepreneur. In addition, to conduct such activities you need to obtain state registration.

How does leasing work?

The leasing operating scheme assumes that the client submits an application to the leasing company, which buys the property using its own or credit funds and transfers it for temporary use. The leasing recipient makes a payment for the use of the property, which is determined by the financing program.

The customer's benefits depend on how the leasing works. The initial costs of the recipient make up a small part of the transaction amount, and the remaining funds are provided by the lessor. Thanks to this method of financing, the client can keep his own funds in circulation, and have income from the use of the received property.

When it comes to international leasing, it is customary to distinguish between two forms:

• A direct leasing scheme is a transaction between legal entities of different countries.
• Indirect leasing scheme - the tenant and the lessor are residents of the same state, and the capital of the latter is at the disposal of a foreign company. Or if the lessor is a subsidiary of a transnational company.

Benefits of leasing

Leasing services are very popular due to a number of advantages, including the following:

• To purchase property on lease, there is no need to have a large amount. There should be enough money to pay the advance payment, which is usually 10% of the total cost of the goods.
• The leasing payment schedule is convenient due to the fact that it can be drawn up taking into account the characteristics of the company’s business. Payment will need to be made from the moment the purchased property is put into use and begins to generate profit for the company.
• Leasing makes it possible to use the mechanism of accelerated depreciation, which allows you to reduce property taxes. A product financed in this way can be on the balance sheet of both the lessor and the leasing recipient. This sets leasing apart from loans and rentals, which do not offer any tax benefits.
• Minimum time for consideration of an application. Typically, companies do not spend more than 3 days studying one application, provided that the recipient initially provided all the necessary documents. In addition, when leasing there is no need to provide collateral, since the lessor is the owner of the property until the recipient buys it in full.
• The average contract term is 3 years, but ten-year contracts are often offered. For example, purchasing aircraft on lease usually involves making payments over a period of 7–10 years.

Thus, due to its efficiency, convenience and ease of use, leasing is the optimal choice for rapidly growing companies, providing them with a competitive advantage in the market.

Benefits for leasing companies

Leasing operations are beneficial not only to recipients, but also to the companies that provide them. Among the main advantages are the following:

• The lessee is not the owner of the property that was purchased under lease. This is an additional guarantee of the return of loan funds.
• Thanks to accelerated depreciation, the leased asset is highly liquid, which allows you to receive a large profit after the end of the contract.
• The lessor plays an important role in the process of preparing and conducting a leasing transaction. It provides certain services to the lessee for which the latter must pay.
• The main objective of leasing is to direct financial resources to the purchase of tangible assets, which allows the lessor to eliminate the problem of misuse of borrowed funds.
• Considering the fact that investments are in the form of property and not cash, this significantly reduces the risk of non-return of money.

What is more profitable: leasing or credit?

For most companies, when it is necessary to purchase equipment, the question arises: take a loan from a bank or purchase goods through leasing?

Having studied the concept and characteristics of leasing, you can see its clear advantages over a loan, however, each case must be considered specifically, from all sides.

Disadvantages of leasing

Despite the huge number of advantages, the following disadvantages of leasing can be highlighted:

• The lessor is responsible for the condition of the property. In other words, there is a risk of property aging.
• Before making a transaction, you need to conduct a preliminary examination.
• The leasing recipient is not the owner of his fixed assets, and therefore cannot use them to provide collateral when obtaining a loan.
• If the equipment fails during the contract period, payments must still be made.

Basic requirements of lessors

To approve a leasing transaction, before concluding a contract, company employees conduct a detailed analysis of the client. The recipient must provide a certain list of documents, the list of which may differ depending on the characteristics of the property and the requirements of the lessor. The requested documents can be divided into two groups: legal and financial.

Legal documents include the charter and constituent documents of the company, a certificate of registration, registration with the tax service, decisions on the appointment of managers and a protocol on the conclusion of a leasing transaction.

In addition, the lessor has the right to request extracts from the Unified State Register of Legal Entities, copies of passports of managers and founders, licenses for a certain type of activity, etc. Legal documents are submitted so that the lessor can obtain basic information about the recipient and his legal status, as well as the availability restrictions on concluding transactions.

Financial documents include accounting reports, information about current accounts and turnover for a certain period of time. Additional documents may include information about accounts receivable, audit reports and information about main counterparties.

The main purpose of studying the recipient's financial documents is to assess the solvency of the company.

In order to purchase property on lease, you should also submit an application in a special form, which will reflect information about the property, suppliers, as well as basic data about the recipient’s activities.

Each lessor has its own specifics: in order to analyze a potential client, company representatives may request a variety of documents and transcripts.

Subject of leasing

The object of leasing can be property complexes, equipment, vehicles and any other non-usable things that can be used to conduct business activities. In this case, the subject of leasing cannot be land plots and environmental areas.

Equipment leasing is one of the profitable ways that allows a company to increase production without significant costs, build new workshops and update technologies through the purchase of technical innovations. Among the main advantages of leasing equipment are the following:

• the company gets the opportunity to develop even with only part of the money for equipment;
• payments are distributed in advance and made according to the agreed schedule;
• the lessee becomes the owner of the equipment immediately after signing the contract and can use it in production;
• monthly payments are covered by the profit received from the operation of the equipment.

Not only a legal entity, but also an individual can purchase a car on lease. This is a new type of financial transactions for the domestic market, but it is rapidly progressing due to the unique leasing structure. Any citizen of the Russian Federation has the right to buy a vehicle as if on lease, but at the end of the contract he will become its owner.

The motorist will receive the right to use the vehicle immediately after making the advance and first payment. Today, such services are offered not only by leasing companies, but also by banking institutions, as well as car dealerships.

The main advantages of car leasing:

1. You can buy not only a passenger car, but also a truck, as well as specialized equipment.
2. The condition of the car doesn't matter. You can also buy a used version.
3. To complete a transaction, you need to provide a minimum package of documents.
4. The level of requirements is much lower than when applying for a loan.
5. The lease period is no more than 5 years, and after the end of the contract, the client can become the owner of the car by paying the remaining amount.

Real estate leasing is a cross between rent and mortgage. The essence of the deal is that the leasing company buys the property chosen by the client and then rents it out. The client must pay every month for the use of the apartment based on the leasing agreement.

A mortgage agreement is cheaper than a leasing agreement. The only advantage of real estate leasing is the reliability of the transaction for all participants. With a mortgage, the bank always remains at risk that the client will not be able to pay, as a result of which the financial institution will be forced to take additional measures and incur costs to defend its interests.

As for the leasing company, it is the owner of the living space, so it does not lose anything, even if the client turns out to be insolvent. That is why the lessor is more loyal to clients with not the best credit history.

Economic importance of leasing

According to its economic function, leasing is one of the forms of investing in fixed assets. At the same time, the leasing system is an excellent addition to traditional financing channels: own funds, loans and other sources.

The effectiveness of leasing is most noticeable for enterprises just starting their activities or seeking to modernize production. Such companies are experiencing financial difficulties, and the lack of guarantees does not allow them to obtain a loan from a bank. When carrying out a leasing operation, the risks are lower, since the equipment is held as collateral.

All of these functions of leasing are important, but the most significant is that the sales of technical objects are stimulated, and small enterprises receive modern technological means for development.

In modern economic relations, leasing remains one of the most important levers for attracting and placing investments. The development of innovative technologies in the service sector determines a new milestone in the development of leasing operations. Despite the fact that this type of financing appeared on the domestic market relatively recently, the prospects for the development of leasing in Russia are quite bright. Every day more and more small businesses are resorting to leasing operations to develop their own businesses.

Thus, leasing is, in simple terms, a financial lease that allows a company or individual to use valuable property for a certain fee with the right to purchase the goods in the future.

Almost any property can be leased, with the exception of land plots and environmental management facilities. The meaning of leasing is that certain property is transferred for long-term use for monthly (quarterly) payments. Leasing is an opportunity for small companies to preserve their working capital and increase profits.

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Hello, dear readers of the magazine site. Today everyone is trying, be it an entrepreneur or an individual, and this issue is especially relevant when you need to buy a car. In this article, we tried to describe in more detail what leasing is, how to arrange it and what nuances there are when registering.

Today there are profitable ways to bypass credit obligations and get your car on favorable terms, which we will talk about later and look at several real examples.

Many people, even those who earn good money, use loans very often. This is a great way to get the thing you want, be it a car or an apartment, as quickly as possible and start using it right away. Not everyone is able to save a large sum of money in order to pay in cash right away, and in some situations this is not even rational. A separate type of loan is leasing, and despite the fact that many do not know the meaning of the word leasing, it is very easy to explain in simple words.

Leasing is in simple words: features and main types + examples of calculations

People often borrow money from banks, but the benefits of a bank loan are questionable. Of course, conditions are different everywhere, but if we are talking about a large sum of money, then it is not difficult to guess that the interest will be appropriate. It seems that there is no way out of this situation, because the interest rates in all banks are high, but you want to buy a car right now. In such a situation, leasing will be an excellent alternative.

What is leasing in simple words and what is its essence + definition of the term

Literally from English the word lease is translated as rent. It follows from this that leasing is a type of lease, but in Russian legislation it has some distinctive features. To put it very briefly, leasing is a cross between rent and credit. Its essence is that the company enters into an agreement with a person and buys some property for him. What exactly can be the subject of leasing, and what restrictions exist, will be discussed a little later.

The person who enters into the agreement is called the lessee. He has the right to use the property that the company acquired for him. This use is carried out on a rental basis. The lessee pays monthly payments, thanks to which, within a certain period, he receives a car, real estate, and so on. The company that provides this service is called the lessor.

The main difference between leasing and regular rent is that upon expiration of the contract, a person has the right to buy the property for a certain amount, which is prescribed in advance. Along with this, the amount of the down payment is also prescribed, which is usually about 30%. There are companies that offer leasing without a down payment, but the conditions will be discussed a little later.

What can be the subject of leasing transactions

The subject of leasing transactions can be any non-consumable item. To be more precise, in the vast majority of cases the following types of assets are leased:

• Enterprise or production
• Commercial building
• Any type of building
• Production equipment
• Vehicles
• Other real or movable property

It is worth noting that previously there was another very important requirement for the subject of leasing transactions - it must be commercial and make a profit. It is not difficult to guess that such conditions made it impossible to lease passenger cars, and this is a significant part of the market. This reason became one of the main reasons for canceling this requirement, so now the subject of the transaction can be almost anything.

There is also one more nuance - the subject of leasing cannot be land. This is due to the fact that this property falls under the category of natural objects, so some restrictions are established for them. In addition, there are items whose free circulation is prohibited or restricted. Leasing them won't work either.

IMPORTANT: After the conclusion of the transaction, the leased item, no matter what it is, remains the property of the lessor. This is very similar to a bank loan, because when a person takes out a loan, for example for a car, it also remains the property of the bank.

It is worth considering that the payments made by the client are rental payments. A person pays for use, so all responsibilities for insurance and care of the leased item lie entirely with the lessor. It sounds very profitable, but despite the fact that the company will pay for such expenses, in the future they will still be compensated by payments made by the lessee.

Leasing or bank loan: which is more profitable to take?

We have already said that the property that a person receives is in both cases owned by the company. However, despite this, there is a very big and fundamental difference between a bank loan and leasing. In order to understand the differences in more detail, it is necessary to evaluate the pros and cons of both leasing and credit.

Credit

When a person takes out an item on credit, he immediately begins to use it, and will have to give it back only if the terms of the loan are not met. In this article we do not consider the consequences of such actions, since it is clear that in both cases they will be disastrous. Much more interesting are the advantages of a bank loan:

• A person receives borrowed funds and can buy anything by adding his own savings to the loan
• A large number of different programs in different banks. A person has a very large choice in this regard, so you can choose good conditions.

In order to get the most complete picture possible, it is necessary to consider not only the pros, but also the cons. The disadvantages of the loan are the following:

• A complex and very long registration procedure if we are talking about a large amount of money.
• Large percentages that are often unaffordable for many people.

Despite the fact that the disadvantages of a loan are quite significant, people are very willing to use it, since it is not always possible to draw up a leasing agreement.

Leasing

Loans and leasing have a lot in common, but they are still different types of contracts that have their own advantages and disadvantages. The main advantages of leasing are as follows:

• Lower monthly payment amount. Since a person pays rent, the monthly payment becomes significantly lower than the loan payment. This is precisely the main advantage and the main reason for most people to use leasing.
• The ability to buy or not buy the property. This is very beneficial in cases where a person needs property only for use for a few years. In this case, the client has the right not to repurchase it upon expiration of the contract, and monthly payments will become even smaller.

There are not many disadvantages to leasing, but they still exist. The main disadvantages are the following:

• Limited list of contract items. Not all things can be leased, and a loan in this regard has a wider range of validity.
• Significant amounts of the first payment. When it comes to leasing property for a large amount, a 30% down payment may be unaffordable for many people. Of course, as mentioned earlier, you can enter into an agreement without a down payment, but this implies having an impeccable credit history, and the size of the monthly payments and the ransom amount in this case becomes much less profitable.

These were the main advantages and disadvantages of leasing and car loans. It is impossible to give a universal answer as to which agreement is more beneficial, since each situation must be approached individually. However, if we are talking about buying real estate or a car, in this case leasing is often much more profitable than a loan, but some people do not use it simply because they do not understand the essence of the transaction.

Who can be a lessee and what are the conditions?

The lessee can be either an individual or a legal entity. The conditions for them, naturally, will be different, and this is primarily due to the fact that legal entities in most cases enter into an agreement for commercial property, and individuals, on the contrary.

Leasing agreements can be very profitable in terms of monthly payments, which are usually not very large. However, many lessees decide to buy back their property at the end of the contract, and here the amount will be more significant. There are very few leasing companies in Russia that are ready to offer clients leasing without purchase. This is due to the fact that the sale of property after lease requires additional funds and mechanisms, and this is very difficult and generally a separate type of business. Nevertheless, such a company can be found, but the benefit from the contract in this case will be in question.

The lessor most often determines the minimum amount of the down payment. This means that if the lessee wants to pay a larger amount, he has the right to do so. In this case, the rental conditions will be even more favorable. This is unlikely to affect the size of monthly payments, but the ransom amount will be significantly reduced.

How to arrange leasing profitably?

One of the main advantages and features of leasing is that its registration takes very little time. This is due to the fact that the leasing company does not require the collection of a large number of documents. Accordingly, processing the request and making a decision takes a minimum of time, and in some cases the client can receive a response within 24 hours.

The reason for such fast processing and low demands is that leasing companies do not place a lien on the property. They simply buy it and register it as their property, which greatly simplifies and speeds up the whole process. The lessee, in turn, receives the property only for use with the right of redemption.

Advice: As noted earlier, in order to obtain a profitable lease, you must try to make the largest possible amount of the first payment. Most often, this does not affect payments, but there are exceptions, and the ransom amount will be less in any case.

Advertising campaigns of lessors are often full of headlines about low interest rates. In fact, you need to be very careful with this, since the scheme for calculating annual interest here is somewhat different from the bank one. As an example, we can take the conditions offered by the most popular bank in Russia, Sberbank.

Advance payment, that is, the first payment must be at least 10%. This is largely a publicity stunt, since in practice it is usually around 20-30%. For example, let’s take the average – 25%.

Sberbank offers its clients a financing amount of up to 24 million rubles. This is the amount that will be spent on the purchase of the property itself, and 25% of this amount will be paid by the client as an advance payment. For example, if a bank buys a car for a client worth 10 million rubles, the client immediately makes an advance (10,000,000 * 0.25 = 2,500,000). It turns out that the actual loan amount is 7.5 million.

The rate of increase in price depends on specific conditions, but since we are looking at a typical example, we will take the average rate of 4%. 7,500,000 rubles that the bank issues is the body of the debt. To derive the total amount of the contract, imagine that we took out a loan for 5 years and use the following formula:

Body of the debt (7,500,000) + interest on the loan (4,000,000) + tax (500,000) + VAT (1,000,000) = total contract amount (13,000,000)

This formula does not include the advance, since it immediately goes to the bank account. If we add the advance, then ultimately the client will pay the bank 15,500,000 rubles. This is about 18% per annum.

All calculations in this formula are rounded in order to more clearly show how exactly interest is calculated on leasing. In this case, the appreciation rate is added to the loan rate, which at Sberbank is about 10%. That is why you should not immediately rush to seemingly favorable conditions, because as it turned out from the calculations, the final percentage was about 18.

Main types of leasing in business and their essence: 5 main areas

Leasing is a very common practice in modern business. This is due to the fact that the terms of the agreement are often much more favorable than those of a loan, and for business this is fundamentally important. There are 5 main areas of application of a leasing agreement in business, and each of them is worth talking about in more detail:

Car leasing

Car leasing is the most popular and widespread way of using a leasing agreement, but in this case we are not talking about personal, but about commercial use of transport. This is fundamentally important, since passenger cars are rarely purchased for these purposes. In this case, the subject of leasing is usually trucks, vans, buses, and so on.

Lessees in this direction are usually transport and. Leasing is especially beneficial for start-up companies, since at the start they do not have such a large amount of funds to purchase the required amount of transport. By contacting a leasing company, a company can purchase enough cars and begin its activities. After this, the first profit will begin to appear and in a few years, when the contract ends, the company will already have enough funds to buy out its fleet. It is also worth noting that there are significant differences between leasing and.

The terms of the contract in this case will be very loyal, since the lessor gets a big client. This is a good deal for both parties, which is why this practice is very common in the transport and logistics environment.

Leaseback

For many large companies that already have a fairly large amount of property on their account, leaseback becomes an excellent way to overcome the crisis and attract additional funds to production.

The essence of this agreement is that the lessor buys property from the lessee, after which he immediately leases it out. In this way, the company can receive significant funds for existing property, be it cars, machines, real estate, and so on, but at the same time not turn it off from production.

All property becomes the property of the lessor, and the client only makes monthly payments. When completing such a transaction, 2 contracts are concluded. First, the purchase and sale agreement, which confirms the transfer of property into the ownership of the leasing company. After this, a standard leasing agreement under which the client receives the property for use.

Operational leasing

The essence of operating leasing is that it does not provide for the right to repurchase the property that is leased. This type of transaction is necessary in cases where a company requires additional assets to maintain existing business processes. Very often companies are not interested in purchasing the property they lease. They only need it for a while, so this direction is very popular and in demand.

There are 3 parties involved in concluding a transaction:

• Leasing company
• Lessee company
• Manufacturer of equipment to be purchased and leased

One of the main advantages of such cooperation is that companies that produce the leased item very often cooperate with the lessee. This implies the presence of additional discounts, which makes the conditions as favorable as possible. In some cases, the discount amount can even cover all interest under the contract.

Equipment leasing for small businesses

Any aspiring entrepreneur at the start of his business has some capital, which most often is not enough for anything. In this case, you cannot do without loans, but if we are talking about equipment, a leasing agreement would be a much more profitable option.

The advantage of such a deal is that the entrepreneur will be able to pay for the equipment only when he makes a profit. This is very beneficial, since for a small business in the initial stages it is very important to be as economical as possible. If the enterprise is not successful, and the entrepreneur does not have enough funds to buy the equipment, he may simply not do it. In this case, this is much more profitable than a bank loan, since there is absolutely no point in dodging and looking for money to pay for equipment if it does not bring profit. It is for this reason that this area of ​​leasing in business is one of the most popular.

Personnel leasing

This type of transaction is very similar to an outsourcing agreement. The lessee can provide his enterprise with personnel without unnecessary problems by concluding an agreement with the appropriate company. The main difference is that the employees will not work for a third-party company, but for the client’s company.

However, it must be remembered that the staff receives their salaries from the lessor. For the client’s company, this may be less profitable in terms of direct costs, but if you take into account the total cost of providing work, including taxes, social contracts, and so on, it turns out that in many cases it will be much more profitable to arrange this deal than to hire people yourself .

Personnel leasing is popular in almost all types of business, but it is especially relevant in those companies that operate not in the manufacturing sector, but in the service sector.

These were the 5 main areas of leasing for business. Naturally, this type of agreement has a much larger number of applications, but these are the most popular and in demand. How such transactions are used by individuals will be discussed further.

How to lease a car: step-by-step instructions + examples

Car leasing transactions occupy a large part of the market. This is due to the fact that a car is an ideal leasing item and there are a huge number of situations in which such transactions will be much more profitable than a loan. Next we will talk about what features it has, as well as what subtleties need to be taken into account when concluding a contract.

Almost every person knows what a loan is, but with leasing everything is not so good. Many people rush to conclude an agreement after hearing enough promises in advertising campaigns. As a result, it turns out that the conditions are not at all as expected. The consequences of signing an unfavorable agreement are usually disastrous.

IMPORTANT: Before going to lease a car, each person should carefully read the requirements and conditions. This is a completely different type of transaction, different from both a loan and a lease, so you need to understand it before you start using it.

Take/buy a car on lease for an individual

First of all, you need to decide whether you want to buy the car after the contract expires. In theory, leasing provides that redemption is not at all necessary. A person can simply use the vehicle for several years, after which it must be returned to the company.

This is not only very profitable, but also convenient. A person simply makes monthly payments and does not worry about paperwork. Insurance, care, condition tracking - all this falls on the shoulders of the company. Naturally, the one who uses the car will have to pay, but not directly. All costs are included in monthly payments, so the only thing the driver has to think about is paying the rent on time.

As for the redemption, many clients would probably prefer not to carry it out. However, practice shows that this is possible in very rare cases. Most often, if companies offer to lease a car without a purchase, the amount of the monthly payment in this case is practically no different from that which is issued in the case of a purchase. That is, roughly speaking, it is much more profitable for a person, after concluding a contract, to pay a certain amount and keep the car for himself than to be left without everything. This is the main feature of car leasing for individuals.

As for documents, you will only need a minimum set of a passport and driver's license. With these papers you need to come to the chosen organization and conclude an agreement.

The leasing company will ask the client to fill out an application, after which it will be sent for consideration. It usually takes no more than 2 days from submitting an application to making a decision. Why leasing companies are so undemanding with regard to documents was discussed above in the article.

How to lease a car for legal entities and individual entrepreneurs

If we are talking about legal entities, then most often such transactions involve not one car, but several at once. This is a very large agreement, and three parties gather to conclude it: the recipient of the lease, the lessor and the supplier from whom the cars will be purchased.

The registration process itself is quite fast. Buying a car on lease for legal entities is simple, because you don’t need to worry about the nuances of the purchase, since they are all decided between the lessor and the seller. For a legal entity, in this case, only the lease agreement itself is important. It is concluded very quickly and with a small set of documents, which is a big advantage of such transactions over bank loans.

Obligations of lessees to creditors

The main responsibility of the lessee is to make payments on time and maintain the vehicle in good condition. That is, if any breakdowns occur, he is obliged to fix them. Payment for repairs will be included in monthly payments. When the contract ends, the vehicle must be in full working order and free from any defects. This is especially true in cases where the vehicle is not purchased.

Examples of document forms for registration

Despite the fact that the leasing agreement is very simple, many people are confused about it, so for additional confidence it is better to study the form in advance. An example of a leasing agreement can be downloaded from the link below.

Leasing company - what is it and how to choose the right one - 5 tips from practice + rating of companies in Russia

There are not many leasing companies in Russia, so clients don’t have much choice. Nevertheless, sometimes you have to choose, and in order to make the most correct decision, you need to follow 5 main tips that have repeatedly proven their effectiveness in practice:

Well, so that you can find a company with the best conditions, here are the main companies from which you can choose in Russia:

1. VEB-leasing
2. VTB Leasing
3. Sberbank Leasing
4. State Transport Leasing Company
5. TransFin-M

Conclusion + video

In the end, I would like to say once again that leasing is a cross between rent and credit. In many situations this is convenient, but before concluding an agreement, you need to correctly calculate your strengths so as not to get into an uncomfortable financial situation.

Modernization of the socio-economic sphere, as well as the introduction of new management systems, gives rise to the need for qualitatively new methods for updating enterprise assets.

In the context of a decline in credit and financial relations and cuts in government investment in the economy, there is a need for other types of injections into the production sector. That is why it is worth studying in detail the question of what leasing is and understanding the principles by which it occurs.

Why study leasing operations?

The main goal of this article is to study the nature and essence of leasing processes, models, types and forms of their manifestation in the conditions of the modern national economy.

What is leasing in simple words? This is the leasing of long-term use objects (cars, buildings, equipment, aircraft, etc.), that is, the transfer of a set of rights to own and use real or movable property for a certain (or indefinite) period for financial compensation.

This process most often consists of a tripartite set of relationships in which the leasing company is an intermediary between the equipment manufacturer and the company (or individual) interested in using it.

What is leasing and leasing transaction?

The economic concept discussed in the article is quite complex, so the number of its definitions is large. Translated from English, the verb to lease denotes the process of leasing property for temporary use. Summarizing the opinions of many authors, we can draw the following conclusion about what leasing is.

This economic term includes a set of processes for investing (attracting) financial resources, in which one subject of the relationship (lessor) undertakes to purchase certain property from the manufacturer with the aim of subsequently transferring it for use to the lessee for a certain period for a financial reward.

This process is carried out through a transaction, which is a set of agreements between the manufacturer (seller) of the leased asset, the lessor and the lessee.

The subject of such a transaction may be vehicles, buildings, structures, other movable and immovable property, entire complexes and enterprises used in business. Also, the objects of these agreements may be land plots and other natural resources, unless prohibited by law.

Scheme of the operation

Studying the methodological foundations of the transaction will help answer the question of what leasing is. The general mechanism is as follows:

1. The user (hereinafter referred to as the lessee) applies to the leasing company with an application for the necessary equipment.
2. The company providing this service assesses the liquidity of the transaction. After this, the equipment (leasing object) is purchased from its manufacturer or distributor.
3. After the lessor has become the owner of the equipment, he transfers it for temporary use to the lessee, receiving periodic payments for this.

Who are the subjects of leasing relations?

The parties to the transaction may be:

1. The producer (seller) of property is a legal or natural person who enters into a purchase and sale agreement with the lessor, according to which he provides him with the subject of the relationship (equipment) within a specified period for a certain remuneration.
2. Lessee is a legal entity or individual who, under the terms of the agreement, undertakes to pay for the services of the lessor and receive equipment for this for a certain period under the conditions determined by this agreement.
3. A lessor is a legal or natural person who acquires (for its own or borrowed monetary resources) ownership of certain property, and then provides it for a certain period of time for financial compensation in the form of the subject of a leasing transaction for temporary use to the lessee. In this case, the right to the object of the agreement can either pass into the hands of the lessee or remain with the lessor, depending on the specifics of the agreement.
4. Credit institutions (banks, communities) that provide financial resources for the purchase of equipment under a contract.

As well as other specialized entities: insurance companies and the Russian Association of Leasing Companies (“Rosleasing”).

What functions does Rosleasing have?

This association is a collection of banks, leasing companies and other economic institutions that are part of the Russian Association of Leasing Companies and carry out the following activities:

1. Coordination of activities and pooling of funds of participating companies in order to carry out the most profitable projects.
2. Interaction with government agencies to determine the most important strategic directions for leasing.
3. Development of legal acts regulating leasing activities.
4. Active participation in international economic integration processes.

In the Russian Federation, both leasing for individuals and legal entities is regulated by law. At the same time, its subjects can be residents and non-residents of the state, as well as enterprises with foreign capital.

Leasing objects

Both the provision of fixed assets to companies and leasing for individuals imply the transfer for use of equipment, which can be divided into the following large groups:

1. Agricultural (tractors, combines).
2. Transport (cars, planes, ships, railway cars).
3. Construction (cranes, concrete mixers, scaffolding).
4. Communication equipment (satellites, radio stations, etc.).

What types are there?

1. Financial is a type of leasing that provides for a full return of the cost of the item being transferred. In this case, the amount of transferred funds is divided into the price of the equipment and the income of the lessor. Thus, the condition of financial leasing is that the equipment becomes the property of the lessee at the end of the transaction.
2. An operational agreement is an agreement under which the period for transferring the leased asset is less than the depreciation period. Unlike financial, upon expiration of the agreement, the equipment is returned to the lessor. Often this type of relationship is used for one-time promotions when purchasing equipment is not practical.

What form do leasing transactions take?

In order to understand what equipment leasing is, it is necessary to explore its main forms:

1. Straight. A transaction in which, upon expiration of the lease agreement, the full package of rights to the subject of the transaction passes into the hands of the tenant (lessee).
2. Returnable. What is lease-back? This is a transaction in which the lessee sells his assets to the lessor, immediately returning them in the form of a long-term lease. Used in case of a shortage of working capital at the tenant company. Upon expiration of the transaction, the rights to the leased asset are returned to the lessee.
3. Mixed. With this type of leasing, the property required by the tenant is purchased through the shared contributions of the parties to the transaction. At the end of the contractual relationship, the rights to the equipment are transferred to the lessee, whose starting share of investment usually does not exceed 25 percent.

Types of leasing payments

What is leasing for individuals? persons? Firstly, this is a rather complicated procedure that raises many questions, especially regarding methods of payment for equipment. The compensation scheme is the same for legal entities and individuals and is carried out through leasing payments. This concept includes the amount of compensation for the use of the subject of the transaction. Payments are made using the following methods:

• Fixing the total amount. The contract amount is divided into equal parts and paid annually during its validity period.
• Advance method. When concluding the contract, an advance payment is made, which is indicated in it, the rest is paid according to the previous method.
• Minimum payment method. The payment amount includes the calculation of depreciation for the entire period, as well as various remunerations provided by the lessor.

The payment schedule is specified in the leasing agreement. Payments can be made daily, weekly, monthly, quarterly or annually.

What is car leasing?

A relatively new product in the financial services market for the population is automobile consumer leasing. Every day he gains more and more supporters. Let's figure out what car leasing is for individuals.

First of all, this is a very convenient and profitable method of purchasing transport. In fact, a person rents a car with the right to later buy it. This service is also popular for legal entities, for whom it is more convenient to complete a purchase in several payments.

What is car leasing? For the population, this is an opportunity to use a car immediately after completing a package of documents and making a down payment. Today, this service can be provided not only by specialized companies, but also by banks and car dealers.

Procedure for receiving vehicles

1. The client provides a passport, driver’s license and fills out a special application.
2. Conclusion between the client and the lessor of a vehicle rental agreement with the right to buy, as well as a vehicle purchase and sale agreement between the leasing company and the car supplier.
3. Payment of a down payment by the client in the amount of 20-30% of the value of the subject of the transaction.
4. Car insurance by the client at CASCO and OSAGO rates.
5. Registration of the car by specialists of the leasing company in the traffic police, as well as carrying out a technical inspection.
6. Transfer of a vehicle by a company for use to a consumer.
7. The client, according to the terms of the contract, makes regular payments; upon expiration of the term, the equipment becomes his possession.

Who can buy a car this way?

Any citizen who has business experience can receive a car rental with subsequent right of purchase. Moreover, preference is given to candidates with successful experience in leasing operations and sufficient financial potential.

It is very important to consider all the pitfalls that car leasing has for individuals. Reviews from people who have used this service contain both positive and negative evidence.

Pros of car leasing

1. Possibility of purchasing not only a passenger car, but also a truck, as well as special equipment. It doesn’t matter whether the equipment is new or used, purchased at a showroom or from a private owner.
2. To conclude a leasing transaction, a minimum package of documents is sufficient, while the level of demands on clients is low.
3. The vehicle is registered for a period of up to 5 years, after which the vehicle can be purchased at its residual value. Early return of the subject of the transaction is also possible.
4. The terms of purchase and terms of delivery of equipment to leasing companies are more convenient than standard ones.
5. What is car leasing for the population? These are, first of all, flexible payment schedules and the ability to immediately start using the vehicle.
6. If you do not want to register the equipment in your name, this service is also available to the client, since the car is considered the property of the lessor.

Disadvantages of car leasing

1. Interest on leasing agreements is higher than on a car loan (especially for low-budget vehicles).
2. Possibility of car repossession in case of violation of leasing payments.
3. Impossibility of renting out a car or as collateral without the consent of the company that provided leasing services.
4. The need to provide periodic access to inspect the subject of the leasing agreement.

Thus, when deciding on the choice of how to purchase a car, it is necessary to carefully study all the associated factors, as well as the current socio-economic situation.

Hello! In this article we will talk about what leasing is and how to use it. In a difficult economic situation, when banks demand exorbitant interest rates on loans, and leasing as a type of transaction is not suitable for a number of reasons, enterprises or individual entrepreneurs are increasingly turning to leasing companies. The goal is to purchase equipment, transport, and real estate on favorable terms. What is leasing for individuals and legal entities? What types of leasing are there? What are the advantages of such a deal? You will learn about all this in this article!

Great deals on car leasing now at Europlana with government support!

What is leasing in simple words

Leasing - it's the same lease. (Translated from English "lease" - "rent"). But there are a number of significant differences.

Let's look at the diagram as an example:

An enterprise or entrepreneur does not have enough funds to purchase equipment. You can take out a loan with high interest rates, or you can ask a leasing company to buy the necessary equipment. She, in turn, considers the proposal and evaluates the profit for herself. If approved, the lessor leases the acquired property to the enterprise under a special agreement.

Under the terms of this agreement, the lessee pays the company a certain amount every month (leasing payments), as for rent. After a certain period of time, you can buy out equipment, real estate or a car by paying the residual value.

As can be seen from the example, three parties are involved in the leasing process:

• Recipient of property– a person (individual or legal) to whom the leased asset is leased for use for some time, with the possibility of its full redemption;
• Leasing company– the party purchasing the equipment: real estate, transport, equipment or an entire enterprise.
• Salesman– the party who sells the above valuable property.

Sometimes two parties are enough if the owner of the property acts as a lessor. In many cases, another party will be needed - the insurance company.

Purpose of leasing for an enterprise– expand production, modernize technology, which will lead to increased profits.

The lessor benefits from the difference between the market price of the property and its value after the leasing transaction. A seller of equipment, real estate, vehicles gets the opportunity to quickly sell expensive equipment, real estate, vehicles, etc.

According to the law of the Russian Federation, the following property can be leased (transferred):

• Automobile transport;
• Real estate;
• Equipment;
• Enterprises.

Some objects are prohibited, to which special conditions of use apply by law, for example, military items. Such property cannot be leased:

• Without an individual or serial number (for example, when a vehicle does not have a VIN);
• Withdrawn from circulation;
• Natural resources and land.

Leasing companies also set their own restrictions. They depend on the lessor's policy and on the items themselves. There are also common parameters for all objects that are not offered for leasing:

• Having low liquidity;
• Unreliable manufacturer;
• Used item more than 5-7 years old.

The basic rule is that all leased items are purchased in order to use them in the process of any commercial business.

Types of leasing

In accordance with the terms and economic essence of the contracts, there are three main types of leasing:

• Returnable;
• Operating;
• Financial.

There are also leasing of real estate, equipment, vehicles and others.

According to the degree of risk, leasing transactions are divided into three types:

1. Guaranteed– risks are distributed between several parties - guarantors of the transaction;
2. Unsecured– the lessee does not provide any guarantees for the fulfillment of its obligations;
3. Partially secured– having an insurance contract.

Description of the main types of leasing

Leaseback

This is a special type of transaction. In this case, the lessee and the seller of the property are one person. The company enters into an agreement with a leasing company to transfer ownership of its property for a certain amount and immediately acts as a lessee. In this case, the production process does not stop - the equipment is not removed. The company received a large sum, which it can immediately use to increase profits or for other needs. At the same time, it pays small payments every month. This transaction looks like a loan secured by property, but there is no interest to the bank.

Leaseback is beneficial for enterprises that need additional funds for development. After all, it is possible to receive money from the leasing company and the equipment will not be lost, and the production process will continue.

But there is a significant drawback. Leaseback transactions attract special attention from tax authorities. They may consider such agreements one of the ways to evade taxes. But if the transaction is carried out in accordance with all financial and legal rules, and the agreement is justified by economic feasibility, then the fiscal authorities will not have grounds for a fine.

The tax service compares leasing conditions and possible loans. If it turns out that a loan is more profitable for the entrepreneur, then the Federal Tax Service suspects tax evasion.

Here are the terms of transactions that attract the attention of fiscal authorities:

• The leaseback agreement was signed by two parties dependent on each other. According to the law, this is possible, but in practice the Federal Tax Service does not pay VAT refunds precisely for this reason;
• The parties to the transaction used bills, checks and other non-cash methods when making payments;
• One of the parties to the agreement has previously been found to have paid taxes in bad faith.

Operational leasing

This is a transaction in which the period of use of the property is much longer than the term of the contract. The rate is higher than in the case of financial leasing. In fact, a parallel can be drawn with ordinary rent.

The leasing company bears full responsibility for the subject of the contract. In other words, repairs, maintenance and insurance. The recipient of the leased item does not bear any responsibility. All risks associated with the destruction or loss of the leased asset fall on the shoulders of the company.

The recipient of the leased item may terminate the contract with the company if the item is not suitable for use.

Upon expiration of the operational leasing agreement, the lessee can:

• Change an object to another;
• Leave the property to the lessor;
• Conclude another agreement;
• Buy property and become its owner.

Operational leasing has a positive effect on the dynamics of the production process. After all, the equipment is being updated.

The concept of financial leasing

financial leasing – a way to raise funds for specific purposes. The terms of use of the leased asset are equal to the terms of the contract. By the end date of the agreement, the value of the property is close to zero. More often than not, the lessee wants to take ownership of such property, especially since by the end of the lease it is worth practically nothing.

Main features and conditions of financial leasing:

• The lessor purchases property specifically for leasing, and not for its own use;
• The buyer selects the property and the seller;
• The seller is aware of the existence of a leasing agreement, but the subject of the agreement is delivered to the buyer, and he accepts it for operation;
• The lessee forwards all claims regarding the quality of equipment, machinery, and vehicles to the seller, bypassing the lessor;
• In case of damage to the leased item, it is transferred to the buyer after signing the acceptance certificate for commissioning.

Stages of concluding a leasing transaction

Despite the fact that the process of obtaining an object for leasing is considered a simple transaction, you need to carefully consider all stages of its implementation.
Key steps towards a successful leasing transaction:

1. Choosing a leasing company . It is better to give preference to large organizations that are subsidiaries of well-known financial institutions. We recommend using Europlan on favorable leasing terms.

2. Study of all proposed terms of the contract . Before signing the contract, it is necessary to find out: the initial and monthly payment amount, the payment schedule, the conditions under which the transaction is terminated, as well as the characteristics of the transferred property.

3. Drawing up a contract . Before this, the leasing company may require the following documents from the client:

• statement of intention to lease a certain object;
• bank statement about the company's recent turnover;
• financial statements for the last 4 months;
• copies of documents of the business manager;
• agreement with the supplier;
• documents confirming insurance of the leased object.

The lessor may require other documents and papers - this depends on the type of transaction and the company itself.

4. Then comes the down payment . After this operation, the enterprise receives the object of the contract for use.

- one of the profitable ways that allows an enterprise to increase production without high costs, build new workshops, and update technology through the purchase of technical innovations.

You can purchase everything necessary for the operational operation of the office, computer equipment. In agriculture, buy new equipment for processing crops, collecting milk, cutting meat. In the restaurant business, purchase the necessary equipment for trading. Such leasing is also beneficial for the woodworking, gas, and oil refining industries.

The main advantages of using equipment leasing :

• Allows an enterprise or individual entrepreneur to develop, even if they have part of the money to purchase new equipment;
• Payments are evenly distributed over months according to a personal schedule, there is no need to pay the entire cost at once;
• Leased items are immediately available for use, and they can participate in the production process after signing the contract;
• Monthly payments are covered by the profit that will come from the use of new equipment and workshops;
• Payments are classified as cost, which leads to a decrease in the income tax base;
• Savings by reducing property tax payments. This is due to accelerated depreciation. After the contract term, it turns out that the leased item is worth almost nothing.

Car leasing

Both legal entities and individuals can buy a car on lease. This is a relatively new type of transaction for the Russian population, but in recent years it has been rapidly progressing in its distribution.

Let’s take a closer look at the question of what leasing is for individuals. In fact, any citizen of the Russian Federation can purchase a car, as if renting it. One difference is that you can become the owner of the vehicle at the end of the contract.

The motorist gets the opportunity to use vehicles after completing the transaction and making the down payment. Such procedures can be executed not only by special leasing companies, but also by banks and car dealerships.

What is the procedure for leasing a car?

1. The client provides identification and driver documents, fills out the necessary documents;
2. An agreement is concluded between the parties: the future car owner and the lessor. The document gives the right to use transport with its subsequent purchase. A purchase and sale agreement is also concluded between the seller (transport supplier) and the company (bank) that has assumed the responsibilities of the lessor;
3. The recipient of the rental car pays the first 20-30% contribution of the total cost of the contract;
4. It is mandatory to take out insurance for the leased item (car) in two packages: OSAGO and CASCO;
5. The leasing company takes care of the costs and hassle of registering the car with the traffic police and carrying out maintenance;
6. After all the above points, the transport passes into the use of the lessee, but not into ownership. The owner is a leasing company, which can be a car dealer, bank or other financial institution;
7. The user of the car pays monthly amounts, and upon expiration of the contract, the vehicle can be taken over. You can also exchange it for a new car.

Pros of car leasing

1. You can purchase not only a passenger car, but also trucks and special equipment;
2. It doesn’t matter whether the car was used or whether the new car was leased from a dealership or from a private person;
3. Minimum package of documents for completing a leasing transaction;
4. The level of requirements for the client is lower than when applying for a loan;
5. The lease term is up to 5 years, after this period the client can become the owner, for this the remaining amount must be paid;
6. You can return the leased item – a car – ahead of schedule;
7. You can use the car immediately after the transaction.

Cons of car leasing

1. Interest rates for car leasing agreements are higher than for loans, especially for mid-price vehicles;
2. If the leasing payment schedule is violated, the car is confiscated;
3. The car is not property and cannot be rented out or used as collateral without the consent of the official owner - the leasing company;
4. For periodic inspection, you must provide the car to the leasing company.

Before deciding on how to purchase a car, you need to carefully study all the factors, weigh all the pros and cons, and find out all the lucrative offers from banks.

Real estate leasing is something between rent and mortgage. The essence of the process is the same as with other types of leasing. The company buys the property that the client has chosen. Then, the leasing organization rents out this living space to him. The client is obliged to pay monthly amounts for using the lease.

Real estate leasing for individuals

Apartment leasing for the ordinary population has not yet become widespread. Maybe the fact is that people want to see real estate in their possession immediately, and not in 15-20 years. Psychologically, it is much calmer when the apartment becomes property immediately, as, for example, with a mortgage.

When registering real estate on credit, the buyer gets the opportunity to use and own square meters; the right to dispose of it will come after the last payment. When leasing, a person has only one right - to use the living space. All other rights will come into force after the end of the contract period and payment of the residual value.

Purchasing a house or apartment on lease has a number of other disadvantages V:

• Most often, a mortgage agreement is cheaper than a leasing agreement;
• Two transactions are drawn up: one of them is for the purchase and sale between the leasing company and the seller, the second is between the citizen and the leasing company. As a result, more funds are spent on registration. These costs most often fall on the person wishing to purchase an apartment.

What are the benefits of leasing real estate to individuals?

It's all about the reliability of the deal for the parties to the contract. With a mortgage, there is a risk for the bank that the client will not fulfill all obligations. Then you will have to take additional measures, which entail costs for the financial institution. Whereas the leasing company is already the owner of the living space and does not lose anything in the event of the client’s insolvency. Therefore, she is more tolerant of late payments and considers all options for payments that an individual offers her.

Leasing companies do not care about the credit history of their client. Therefore, this type of apartment purchase is suitable for citizens who have been denied a bank loan.

Purchasing housing on lease is also attractive for those people who do not want to own their property and pay taxes on it. For example, this option can be considered if a married couple is in an unstable relationship and one of the parties is afraid of losing part of the property during division.

There are many scammers among real estate leasing companies, so the average citizen should carefully choose an organization. It is best to pay attention to leasing companies that are subsidiaries of a large bank.

Real estate leasing for legal entities

The situation is different with the leasing of commercial real estate for persons engaged in entrepreneurial and financial activities. This type of deal has been around for a long time and is in demand. This is primarily due to favorable taxation schemes.

Not putting real estate on the balance sheet is always beneficial for any enterprise, in particular for the following reasons:

• You can count on a refund of value added tax;
• Accounting records leasing payments as expenses, thereby not underestimating profits and reducing the corresponding tax;
• There is no need to pay property tax at all - the real estate is not listed on the balance sheet of the enterprise and does not belong to it.

That is why purchasing square meters through leasing is much more attractive for an enterprise than a commercial mortgage agreement.

Leasing or credit – which is more profitable?

For clarity, we present a comparative table with the same comparative characteristics for loans and leasing.

Comparison of loans and leasing

The advantage of leasing over a loan is not always obvious. Each specific case must be considered separately from all sides. You cannot do without legal and financial assistance.

Using a specific example, let’s look at leasing a car of a well-known brand. The conditions offer payments 30% less than for a loan. But there is one more point - in order to receive such a favorable offer after the contract period, the car must be returned to the seller. If you buy it out in full, the overpayment will be higher than for the intended loan.

Taxes and depreciation

When determining the income tax base, the enterprise (lessee) classifies leasing payments as expenses. This is described in detail in Article 264 of the Tax Code in paragraph 1 of subparagraph 10.

Under the terms of the agreement, it is possible to include the property on the balance sheet of the enterprise, then the amount of depreciation is deducted from the amount for expenses of leasing payments.

When the property is not on the balance sheet of the enterprise, then it is taken into account by the lessor. In this case, the cost of the subject of the contract is deducted from the amount of all expenses for leasing payments. By law, the income tax base does not take into account expenses for the acquisition of property subject to depreciation. This is the redemption value of the leased asset, and it is written off gradually using depreciation.

There are cases when the contract does not clearly state the amount of the redemption price. In this case, specialists from the Ministry of Finance propose to include all amounts of leasing payments in the initial cost. After ownership rights are transferred to the enterprise, accrue payments as expenses through depreciation.

An enterprise or individual entrepreneur can challenge this position, because there is no mention of the redemption price in the law and the Tax Code. Article 264 of the Tax Code states that all leasing payments are classified as other expenses. The exception is depreciation accrued by the enterprise.

There is also a special procedure for calculating the cost of depreciable property during leasing operations. This is specified in Article NK 257. The initial cost of property includes the costs of delivery, construction, acquisition, and bringing it to a state suitable for use. This means that for the parties to the leasing agreement the initial cost of the leased asset will not differ.

It turns out that if the lessor fully pays off the cost of the property through depreciation, then by the end of the contract he transfers the subject of the contract to the enterprise with zero residual value.

If the property is not fully depreciated, then it is transferred to the other party to the contract at the value that remains after depreciation has been calculated. This part will be written off as expenses of the enterprise through depreciation. Therefore, if the lessee accumulates the redemption value, he will not be able to write it off, since depreciation is not charged on it.

It turns out that it is more profitable not to divide the lease payment, but to include it in full as other expenses.

Depreciation

Accelerated depreciation rates apply to property purchased under lease. In this case, the tax accounting policy of the enterprise must indicate the method of calculating depreciation.

Leasing payments contain VAT, so in the future the enterprise can offset it from the budget in accordance with Articles 171-172 of the Tax Code.

When purchasing on credit, the cost of VAT will be less than in a leasing transaction. This happens because when leasing, the base for calculating VAT includes not only the cost of the property, but also the price for the services of the lessor.

Renting and leasing - similarities and differences

Leasing is similar to renting only from the outside. Leasing is often called financial lease. Essentially, in both cases, the main parties to the transaction are two clients. One person needs a certain expensive item, but does not have the entire amount to buy it. Another client has the funds to purchase the item and can rent it out at a premium for a profit.

However, this is only the external side. In fact, these two operations have many differences.

The main difference is the ability to take into account equipment during leasing, both on the balance sheet of the leasing company and on the balance sheet of the enterprise. When renting an item, it appears in the off-balance sheet accounts of the recipient of the item.

Differences and similarities between leasing and renting

Lease payment schedules

Regular payments on leased property may be regressive, seasonal, annuity.

Regressive payments mean that the monthly payment decreases with each subsequent payment. The same amount (fixed) is meant by annuity payments. As the name suggests, seasonal payments depend on the time of year. Many businesses make a profit during a certain season, so the leasing company may consider special payment terms for them.

What is subleasing

The following cases often arise: the lessee no longer needs the received property or cannot use it. And then thoughts arise: is it possible to rent out the leased item? This will be considered subleasing.

This type of transaction is legalized and a corresponding subleasing agreement is drawn up. Its participants are the new acquirer of the property - the sublessee, the former lessee who no longer needs the subject of the agreement.

The lessor is an organization that owns the property and writes a written consent or prohibition on the transaction.

Conclusion

Now you know what leasing is, types of leasing and how to lease a car, equipment, etc. If you have questions, ask in the comments below. And also read other articles on our website!