When you do not have enough working capital, and you have to invest a large amount of fixed assets - machinery, you can consider cooperating with us to carry out the following operations:

One of the essential differences between financial leasing and traditional leasing is that traditional leasing calculates rent according to the time when the lessee leases the objects, while financial leasing calculates rent according to the time when the lessee occupies the financing cost. It is a kind of financing method with strong adaptability that is produced when the market economy develops to a certain stage. It is a new type of trading method that was produced in the United States in the 1950s. Because it adapts to the requirements of modern economic development, it developed rapidly in the 1960s-1970s all over the world. Today, it has become one of the main financing means for enterprises to update equipment, and it is known as "sunrise industry" " After the introduction of this business mode in the early 1980s, China has also achieved rapid development in more than 30 years. However, compared with developed countries, the advantages of leasing are far from being realized and the market potential is great.

Difference from installment

(1) Installment payment is a kind of transaction in which the buyer not only obtains the right to use the traded goods, but also obtains the ownership of the goods. Financial leasing is a kind of leasing behavior. Although the lessee actually bears the cost and risk caused by the leased property, the ownership of the leased property still belongs to the lessor in name.

(2) Financial leasing and installment payment are also different in accounting treatment. In the financial lease, the ownership of the lease item belongs to the lessor, and the lease item is regarded as a long-term receivable; the lessee is included in the fixed assets for depreciation. The items purchased on instalments are owned by the buyer and are therefore included in the buyer's balance sheet and depreciated by the buyer.

(3) The above two lead to differences in tax treatment. In financial leasing, the lessor can deduct the amortized depreciation from the accrued income, while the lessee can deduct the amortized depreciation from the taxable income, in installment transaction, the buyer can deduct the amortized depreciation from the taxable income, the buyer can also deduct the interest cost of the expenses from the taxable income, in addition, the buyer can purchase some fixed assets in some western regions China can also enjoy tax-free investment.

(4) In terms of term, the payment term of installment is often lower than the economic life of the traded goods, while the lease term of financial leasing is often the same as the economic life of the leased goods. As a result, the term of credit for the same goods obtained by financial leasing is longer than that obtained by installment payment.

(5) Installment payment is not full credit, and the buyer usually needs to pay part of the loan at sight; while financial leasing is a full credit, which provides financing for all the rental price and even the additional costs of transportation, insurance, installation, etc. Although financial leasing usually needs to pay a certain amount of deposit at the beginning of the lease, this fee is generally much less than the spot payment amount required by the installment transaction (for example, in the import and export trade, the buyer needs to pay at least 15% of the payment in cash). Therefore, for the same item, the total amount of credit provided by financial leasing is generally larger than that provided by installment trading.

(6) There are also differences in payment time between financial leasing and installment transactions. The former is generally at the end of each period, usually before the installment, there is a grace period. The installment generally has no grace period, and the rent needs to be paid after the transaction begins. Therefore, the installment payment is usually at the beginning of each period.

(7) At the expiration of the financial lease term, the lease item usually has residual value, and the lessee generally can't deal with the lease item arbitrarily, and needs to go through the exchange procedures or purchase procedures. And the buyer of installment transaction has the goods after the stipulated installment, which can be disposed of arbitrarily.

(8) The object of financial leasing is generally the items with long life and high value, such as machinery and equipment.