Leasing: concept, types of leasing, value

Leasing - what is it? The concept of "leasing" came from the English "lease". In Russia, this term is understood as the type of investment activity associated with the acquisition of property and its further transfer to individuals or legal entities on the basis of an agreement for a certain period of time for a certain fee and on the terms stipulated by the contract, with the possibility of the lessee's repurchase of this property. In other words, leasing is a kind of entrepreneurial activity, which is aimed at investing finance in the purchase of property and the transfer of purchased property in rent.

There are different types of leasing. According to the terms of use of property and depreciation conditions, such types as leasing with full or incomplete payback are distinguished.

Also, this concept is divided into types depending on the duration and form of the organization of transactions, the features of the objects of the contract, the scope of obligations of the parties, types of payments, the market sector and so on.

Financial leasing includes operations for the special purchase of property and the subsequent transfer of this property for use and temporary possession for a period that in duration is approaching the life of the equipment. During the validity of the agreement, the value of the property is returned to the lessor. In addition, he receives profit from the transaction through leasing payments. The lessor buys the property specifically for the purpose of transferring, and not for its own use, and the lessee has the right to choose.

Allocate different types of leasing of this type. Classical financial leasing characterizes the tripartite nature of the relationship, as well as a full reimbursement of the value of the property.

Return leasing is a two-way transaction. Its peculiarity lies in the fact that the lessee is simultaneously a seller of equipment, that is, the owner sells the company's property, but concurrently concludes a leasing agreement for this property.

Leverage or leasing, which implies additional attraction of funds, is more complicated. It implies multi-channel financing and, as a rule, is used to implement projects that require very large funds. A distinctive feature of this type is that when buying equipment, the lessor pays out of his own funds only a part of the cost. The missing part is taken from the creditors. However, the lessor enjoys tax benefits calculated according to the full cost of the equipment. Another feature is that the lessor gets a loan on certain terms, which is not very typical for Russian financial and credit relations.

Also, types of leasing include such a thing as subleasing. Often, leasing is done through an intermediary, not directly. That is, there is a main lessor who leases equipment through an intermediary. In the event of bankruptcy or insolvency of the intermediary, payments will be made directly to the main lessor.

There are other types of leasing. Operative leasing is used for short-term lease of equipment, when the life cycle of the manufactured product significantly exceeds the lease term. Typically, the duration of transactions for this type of operation is less than three years.

The growth in the popularity of operational leases is caused by the fact that lessors are interested in using new opportunities in the sphere of unbalanced financing and risk reduction, which are associated with a decrease in payments and residual value.

In Russia, this market is not yet very well developed, and the cost of leasing is quite high. In addition, there are almost no good companies in the country that can provide high-quality maintenance of rental facilities. The most common is net leasing when the lessee is responsible for all services.