Is far east international leasing easy to enter?

Far East international leasing is relatively easy to enter, but the leasing industry is not a good choice at present and is in a period of decline. You should compare your opportunity cost with other quotations.

Lease refers to the behavior that the lessor transfers the right to use assets to the lessee for lease within the agreed time limit. The main reasons for the existence of leasing are: tax saving; Reduce transaction costs; Reduce uncertainty.

Benefits of lease to lessee

The vigorous development of leasing business shows that leasing is more beneficial than owning a certain property. For the lessee, leasing has the following advantages:

(1) Leasing has opened up new financing channels, which is of special significance to the majority of small and medium-sized enterprises. The lessee can make use of the loan amount of the lease reserve bank and scarce cash resources to enhance the flexible use of the enterprise's working capital.

(2) Full financing can be conducted at a fixed interest rate. Leasing does not require the lessee to pay cash immediately, which helps to alleviate the financial shortage of new enterprises in the development period; In addition, fixed rent helps to prevent the increase of capital cost and avoid the risk of inflation; Fixed rent is convenient to calculate the return on investment and help the lessee to complete the investment decision quickly.

(3) flexibility. The lease agreement has fewer restrictive clauses and flexible lease methods. The creative lessor may sign a lease agreement according to the special needs of the lessee. For example, it can be agreed to wait until the equipment starts running. Pay the rent only after you have the production capacity, and you don't need to mortgage the acquired new equipment to the main lender. The lessee can also avoid signing an expensive refinancing agreement.

(4) It is helpful to accelerate the renewal of machinery and equipment. For enterprises with fast equipment elimination and update, leasing creates convenient conditions for the rapid update of machinery and equipment. In most cases, the lessee transfers the residual risk to the lessor, thus reducing the risk of equipment scrapping due to obsolescence.

(5) The lease qualification examination procedure is simple, and the application for approval is quick, which helps the lessee to grasp the business opportunities.

(6) Conducive to the revision of financial statements. When operating lease is adopted, treating rent as operating expenses can avoid increasing large debts for purchasing equipment and effectively prevent the increase of asset-liability ratio.

(7) There is no need to increase capital to purchase equipment, which is conducive to maintaining the stability of equity distribution.