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1、Direct Financing Lease
According to the leaseholder’s choice, the leaser need to buy equipment from the equipment manufacturers and rent it out. At the end of the lease term, the equipment shall be returned and owned by the tenant company.
This can be applied to fixed assets, purchasing of large equipment, technological renovation of enterprise and upgrading of the equipment.
The leaser repeatedly rents their self-running lease assets to different lessees. The lessees should pay for the rental and can use it until the estates have been discarded or obsoleted.
3、Sale and Leaseback
Tenant companies sell all the equipment to the leaser at a fair price, and then rent its back from the leaser by financing lease. The leaser shall enjoy the ownership of the equipment in the law. But actually the tenant enterprise shall bear the risks and rewards of the equipment.
This can be applied to the enterprises which are lack of circulating fund, have no enough initial cash with a new investment project, or hold rapid appreciation.
This way of financing lease is aiming at the same subject matter. During the process of subleasing, the leaser rent the leased items from other leaser, and then subleasing to tenant. The ownership of the lease items belong to the first lessor.
According to the principal’s written contract, the lessor receives the principal’s funds or the leasing subject matter, and deals the business with the designated lessee. During the lease term, the ownership of the lease items belong to the principal.
The lessor and the domestic agencies with lease qualifications as a joint lessor lent the equipment to tenant company by financing lease. Usually, partners are leasing companies, financial companies ,or other institutions with leasing qualification.
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