Briefly describe the functions of financial leasing and the characteristics of financial leasing and

The functions of financial leasing can be expressed in the following aspects:

1. Financing and investment are the basic functions of financial leasing.

In the beginning, financial leasing was mainly used as a way of financing, especially for small and medium-sized enterprises that have difficulty obtaining bank loans. Financial leasing is financing in the form of financing, and the convenience of financing will inevitably bring about the expansion of investment, which is manifested in the fact that the lessee can expand equipment investment through financial leasing, and on the other hand, it also shows that social funds can smoothly enter the investment field, and social assets have been effectively allocated. These two functions make financial leasing have a special role in the field of investment and financing that other forms of financing do not have, and become the basic factor to promote the development of the leasing industry.

2. Product ** and asset management are the extended functions of financial leasing.

The product function is directly related to the special business form of financial leasing, because each financial leasing business is tightly tied with the equipment, the lessor rents the equipment and realizes the sales and use of the equipment at the same time. Therefore, financial leasing is not only a financing activity, but also a process of sales.

3. The asset management function is a subsidiary function of financial leasing.

The asset management function is built on the foundation of a continuously innovative leasing business.

The asset management function is embodied in the following aspects:

The first is to achieve the purpose of off-balance sheet financing through operating financial leasing. Operating financial leasing is still a kind of medium and long-term equipment financing, but the leased assets are not recorded in the lessee's balance sheet, which does not affect the lessee's ability to borrow, and the lessee does not have to bear the treatment of the residual value of the equipment, which optimizes the financial arrangement of the lessee.

Second, through the sale and leaseback, the asset conversion is realized, so that the fixed assets of the enterprise can be realized, the occupation of fixed assets is reduced, and the rate of return of the enterprise is improved.

Third, through financial leasing, the lessee can use the equipment more effectively and reduce the idle waste of equipment. The asset management function enables financial leasing to break through the limitations of a single financing function and greatly expands the development space of financial leasing.

The vast majority of the funds in the financial leasing industry still come directly or indirectly from the bank through various means, and the most common method is: the rent obtained by the financial leasing enterprise as the lessor is a relatively stable fund**, which is recorded as accounts receivable in accounting, and the financial leasing enterprise can 'sell' the accounts receivable to the bank to obtain a sum of cash, and then pay the money to the lessee. In this process, it can be said that financial leasing companies have achieved the goal of 'empty gloves and white wolves', but even so, they are still unable to reduce the cost of capital because the money comes from the bank.

Legal Analysis: The characteristics of financial leasing are as follows:

1. The lease period is long;

2. For financing purposes;

3. At the expiration of the lease period, the equipment is generally retained and purchased by the lessee enterprise;

4. During the equipment leasing period, the maintenance and depreciation of the equipment shall be the responsibility of the lessee.

The characteristics of an operating lease are as follows:

1. The lease period is short;

2. The purpose of the operating lease is to finance, but to provide technical services that the lessor can provide;

3. The lessor provides special services;

4. During the equipment leasing period, the lessor shall be responsible for the maintenance and depreciation of the equipment;

5. When the lease expires or the contract is terminated, the leased equipment shall be returned to the lessor.

Legal basis: Article 735 of the Civil Code of the People's Republic of China A financial lease contract is a contract in which the lessor purchases the leased property from the seller according to the lessee's choice of the seller and the leased object, provides it to the lessee for use, and the lessee pays the rent.

Article 736 The contents of a financial lease contract generally include the name, quantity, specifications, technical performance, inspection method, lease term, rent composition and payment period and method of payment, currency, and the ownership of the leased property upon the expiration of the lease term.

1. The purpose is different.

The purpose of financial leasing is to obtain the ownership of equipment, such as financial leasing of a piece of equipment, after the expiration of the lease period, the ownership of the equipment can be obtained by retaining the purchase price in the name; Operating leases are not intended to take ownership of the equipment, but are for short-term use.

2. The judgment methods of the two are different.

The essence of financial leasing is to transfer all the risks and rewards related to the ownership of assets, in a sense, for the lessee to determine the right of first refusal, financial leasing is essentially an alternative way to purchase fixed assets by installments, but it is much higher than direct purchase. However, the operating lease is different, only the right to use the asset is transferred, but the risks and rewards related to the ownership of the asset are not transferred, and it still belongs to the lessor, and the lessee only pays the relevant expenses in accordance with the contract, and the operating lease assets that expire are returned to the lessor by the lessee enterprise.

3. The leasing procedure is different.

The equipment leased by the operating lease is selected by the leasing company according to the needs of the market, and then the lessee is looking for the lessee enterprise, while the equipment leased by the financial lease is purchased by the lessee enterprise at the request or selected by the lessee directly from the manufacturer or seller.

4. The lease term is different.

The operating lease term is shorter, which is shorter than the effective life of the asset, whereas the lease term of the financial lease is longer, which is close to the effective life of the asset.

5. The responsible parties for equipment repair and maintenance are different.

The user has the obligation to repair and maintain the equipment of the financial lease, while the operating lease does not have this obligation.

6. After the expiration of the lease period, the equipment disposal method is different.

After the expiration of the operating lease, the leased assets are recovered by the leasing company, and after the expiration of the financial lease, the enterprise can retain and purchase a small "nominal price" (equivalent to the market selling price of the residual value of the equipment).

7. The cost of leasing is calculated differently.

The financial lease is based on the financing amount of the leased equipment (generally based on the bank interest rate), and the operating lease is calculated based on the time of possession of the leased equipment (generally based on industry standards or industry rules). For example, a financial lease of a piece of equipment for 2 years, occupying 1 million financing funds, and a monthly lease of 50,000 yuan, while an operating lease of a piece of equipment for 2 years, can use the equipment for 2 years, and the monthly rent is 40,000 yuan.

1. The role is different. Because the leasing company can provide ready-made financial leasing assets, so that the enterprise can obtain and install and put into use in a very short time with a small amount of money, and can play a role quickly;

Therefore, financial leasing behavior can enable enterprises to shorten the construction period of the project, effectively avoid market risks, and at the same time, avoid enterprises from letting go of fleeting market opportunities due to insufficient funds.

Operating leases enable enterprises to selectively lease assets that they urgently need but do not want to own. In particular, equipment with high process level and fast upgrading is more suitable for operating leasing.

2. The judgment methods of the two are different. Financial leasing assets are purchased by professional leasing companies and then leased to enterprises that need to use them.

Financial leasing is essentially an alternative to the purchase of fixed assets in installments, but it is much higher than outright purchases. In the case of an operating lease, however, only the right to use the asset is transferred, but the risks and rewards associated with the ownership of the asset are not transferred;

It still belongs to the lessor, and the lessee only pays the relevant expenses in accordance with the contract, and the operating lease assets that expire the lease term are returned to the lessor by the lessee enterprise.

3. The leasing procedure is different. The equipment leased by the operating lease is selected by the leasing company according to the needs of the market, and then looks for the lessee enterprise, and the financial lease leases the design.

It is to be purchased at the request of the lessee or selected by the lessee directly from the manufacturer or seller.

Legal basis] Article 703 of the Civil Code, a lease contract is a contract in which the lessor delivers the leased property to the lessee for use and income, and the lessee pays the rent.

Answer]: Financial leasing is a credit business in which the lessor (leasing company) purchases equipment according to the requirements of the lessee (lessee enterprise) and provides it to the lessee for a longer period of time as stipulated in the contract or contract. It achieves the purpose of financing through the financing of goods, and is the main form of modern leasing.

1) Characteristics of financial leases.

1) The equipment lease period is long. According to international practice, the lease term is generally close to 70% to 80% of the economic service life of the asset. China's accounting standards stipulate that the lease period shall not be less than 75% of the economic service life.

2) The lease contract or deed shall not be terminated arbitrarily. It is generally believed that after the contract is signed between the two parties, neither party shall terminate the contract within the specified time limit without the consent of both parties, so as to protect the rights and interests of both parties.

3) After the expiration of the lease, the assets shall be disposed of in the manner agreed in advance: or returned, or renewed, or retained. In most cases, it is generally up to the lessee to pay a small amount of the shelf price, i.e., to retain the asset and take ownership of it.

2) The nature of the financial lease.

Financial leasing is the lessor's purchase of the leased property at the request of the lessee, and then leases it to the lessee for use. The lease period is generally close to the useful life of the equipment. This is due to:

1) The financial lease agreement is a contractual type and an obligation that must be performed, which is the same as a loan contract.

2) The basic content of the financial lease agreement is generally the same as that of the loan contract, such as the lease period and the loan period, the lease amount and the sum of principal and interest, etc.

3) Whether it is the inability to repay the loan or the inability to pay the rent, the financial credibility of the business can be seriously damaged.

The characteristics of financial leasing are generally summarized into five aspects.

1) The subject matter of the lease shall be determined by the lessee, and the lessor shall purchase and lease to the lessee for use, and can only be leased to one enterprise during the lease period.

2) The lessee is responsible for inspecting and accepting the equipment provided by the manufacturer, and the lessor does not guarantee the quality and technical condition of the equipment.

3) The lessor retains the ownership of the equipment, and the lessee has the right to use the equipment by paying rent during the lease period, and is responsible for the management, repair and maintenance of the equipment during the lease period.

4) Once the lease contract is signed, neither party has the right to unilaterally revoke the contract during the lease period. The execution of a contract can only be suspended if the equipment is damaged or proves to have lost its value, and a substantial penalty is payable for breach without cause.

5) After the end of the lease period, the lessee generally has three options for the equipment to retain, renew and surrender the lease, if you want to keep the purchase, the purchase can be determined by the lease parties through negotiation.

The functions of financial leasing include investment and investment promotion functions, equipment functions, financing functions, asset management functions, risk and leasing capital management functions, and flexible transformation of capital forms.