What are the main differences between an operating lease and a finance lease?

1) The purpose is different. An operating lease is an asset leased by the lessee simply to meet the short-term or temporary needs of production and operation; The main purpose of a financial lease is financing, and the lessee has an obvious intention to acquire assets.

2) The risks and rewards are different. The risks and rewards of the assets during the operating lease term remain with the lessor. During the lease period, according to the principle of "substance over form", the leased assets should be regarded as their own assets, and the corresponding insurance, depreciation, maintenance and other related expenses should be borne while enjoying the benefits.

3) Rights are different.

Operating leases. At the end of the lease term, the lessee may renew the lease, but there is no special right to purchase the asset at a bargain price, nor an option to renew the lease or buy at a bargain; At the end of the financial lease term, the lessee can purchase the asset at a low cost or extend the lease term at a preferential rent.

4) The lease is different. Operating leases, with or without a lease; It can be cancelled at any time at the request of one party. In general, a new lease cannot be cancelled under a finance lease.

5) The lease term is different. The lease term of the operating lease is significantly shorter than the useful life of the asset; The main purpose of financial leasing is to finance, and the lease term is generally the effective service life of the asset, and almost all the investment in the leased asset can be recovered through almost one lease.

6) Rent is different.

A finance lease is a lease that substantially transfers all the risks and rewards associated with the ownership of the asset. Its ownership may or may not eventually be transferred.

Legal analysis: the main difference between operating lease and financial lease: the purpose is different, operating lease is the lessee simply to meet the short-term or temporary needs of production and operation to lease assets; The main purpose of a financial lease is financing, and the lessee has an obvious intention to acquire assets. The risks and rewards are different; The rights are different.

Legal basis: Civil Code of the People's Republic of China

Article 703 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.

Article 735 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.

The main differences are as follows:

1) The purpose is different. Operating lease is the lease of assets leased by Tongzao people simply to meet the short-term or temporary needs of production and operation; The main purpose of a financial lease is financing, and the lessee has an obvious intention to acquire assets.

2. Risks and rewards are different. The risks and rewards of the assets during the operating lease term remain with the lessor. However, financial leasing stipulates that the lessee shall treat the leased assets as its own assets during the lease period, and bear the corresponding insurance, depreciation, maintenance and other related expenses while enjoying the benefits.

3. Differences in rights. Operating lease, at the end of the lease term, the lessee can renew the lease, but there is no special right to buy the asset at a bargain, and there is no option to renew the lease or buy at a bargain. At the end of the financial lease term, the lessee can purchase the asset at a low price or extend the lease term at a preferential rent.

4. The difference between leases. Operating leases, with or without a lease; In general, the lease of a financial lease cannot be cancelled at will and a new lease can be entered.

First, the role is different.

Because the leasing company can provide ready-made financial leasing assets, so that the enterprise can be obtained and installed in a very short period of time with a small amount of funds, and can quickly play a role and produce benefits, therefore, the financial leasing behavior can enable the enterprise to shorten the construction period of the project, effectively avoid market risks, and at the same time, avoid the enterprise due to insufficient funds and let go of fleeting market opportunities.

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.

Second, 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 tenant is found.

The equipment leased by the financial lease shall be purchased at the request of the lessee or selected by the lessee directly from the manufacturer or seller.

Third, the characteristics are different.

Operating leases are voidable. During the contract period, the lessee may terminate the contract and return the equipment in order to lease more advanced equipment;

At the expiration of the lease term, the ownership of the leased assets is transferred to the lessee.

Fourth, 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.

Fifth, the responsibility for equipment repair and maintenance is different.

Operating leases are the responsibility of the leasing company, while financial leases are the responsibility of the lessee.

Fixed assets leased by "operation" cannot be depreciated.

The fixed assets leased by "financing" shall be treated as self-owned assets for depreciation.

The depreciation is accrued by the lessor, and the lessee only pays the rent.

According to the current relevant provisions, financial leasing refers to the lessor's purchase of the leased object selected by the lessee for the purpose of financing, and then leases the leased object to the lessee for medium and long-term use on the condition of collecting rent.

The basic characteristics of financial leasing are: the lessee selects the investment objects to be leased and purchases them with capital by the lessor; It is non-terminable, and the lessee does not have the right to terminate the contract in advance on the condition of returning the leased property; The absolute term of all financial lease transactions is more than one year.

More colloquial explanation:

Financial leasing is that you sign a contract with the other party, you lease the other party's fixed assets, according to the contract you pay the lease fee, and the ownership of the fixed assets belongs to you after the lease expires.

1. The purpose is different, and the operating lease means that the lessee leases assets only to meet production, short-term or temporary needs; The main purpose of a financial lease is financing, and the lessee has an obvious intention to purchase assets;

2. The risks and rewards are different, the risks and rewards of the assets in the operating lease are still owned by the lessor during the lease period, and the financial lease treats the leased assets as its own assets in accordance with the principle of substance over form, and bears the corresponding insurance, depreciation, maintenance and other related expenses while enjoying the benefits;

3. Different rights, after the expiration of the lease, the lessee can renew the lease, but there is no special right to purchase cheap assets, after the expiration of the financial lease lease, the lessee can purchase assets at preferential rent or extend the lease term.

1. How to deal with the financial lease contract if the vehicle is not returned.

The non-return of the vehicle under the financial lease contract can be resolved through negotiation, mediation and litigation. Civil Code

Article 735.

Definition of financial lease contract] A financial lease contract is a contract in which the lessor purchases the leased object 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 content and form of the financial lease contract] The content of the financial lease contract generally includes the name, quantity, specification, technical performance, inspection method, lease term, rent composition and payment period and method, currency, and the ownership of the leased object upon the expiration of the lease term.

The financial lease contract shall be in written form.

Article 737:[Invalidity of Financial Lease Contract]A financial lease contract concluded by the parties in the form of a fictitious lease is invalid.

Article 738.

The impact of the business license of the leased property on the validity of the contract] In accordance with the provisions of laws and administrative regulations, if an administrative license shall be obtained for the operation and use of the leased object, the lessor's failure to obtain an administrative license shall not affect the validity of the financial lease contract.

Article 739.

Delivery of the subject matter of the financial lease] In the sales contract concluded by the lessor according to the lessee's choice of the seller and the leased object, the seller shall deliver the subject matter to the lessee in accordance with the agreement, and the lessee shall enjoy the buyer's rights related to the subject matter received.

2. Does the financial lease not belong to the bankruptcy estate?

The assets leased by way of financial lease do not belong to the debtor's bankruptcy estate, and the ownership still belongs to the lessor.

Financial leasing means that the lessor purchases the leased object from the supplier and leases it to the lessee for use according to the specific requirements of the lessee for the leased object and the choice of the supplier, and the lessee pays rent to the lessor in installments, and the ownership of the leased object belongs to the lessor during the lease period, and the lessee has the right to use the leased object. After the expiration of the lease term, the rent is paid and the lessee performs all its obligations in accordance with the provisions of the financial lease contract, if there is no agreement on the ownership of the leased property or the agreement is unclear, it may be supplemented by agreement; If a supplementary agreement cannot be reached, it shall be determined in accordance with the relevant terms of the contract or transaction customs, and if it is still uncertain, the ownership of the leased object shall belong to the lessor.