Types of Leasing
Financial Leasing
Lessee承租人 defines the model, type and other specifics of the equipment. Lessor出租人 (leasing company) does not have any role in this process.
Lessee negotiates directly with the seller of the equipment for price, payment and delivery conditions.
Lessor provides necessary finance during purchase stage and pays the seller.
The ownership of the equipment belongs to the lessor during lease contract term.
At the end of the contract term the ownership of the equipment is transfered to the lessee at a “symbolic price”.
Operational Leasing
Lessee defines the model, type and other specifics of the equipment. Lessor may bring suggestions depending on the availability of equipments in its portfolio.
Lessor negotiates with the seller for price, payment and delivery conditions.
Lessor provides necessary finance during purchase stage and pays the seller.
The ownership of the equipment belongs to the lessor during lease contract term.
At the end of the contract term the ownership of the equipment stays on the lessor and not transferred to the lessee.
Financial
Lessee承租人 leases the equipment to provide long-term finance and to get the ownership at the end of the contract term.
Lease rentals cover the cost of the equipment, purchase costs and finance costs.
Usage, repair, maintenance and insurance costs belong to the lessee.
Operational
Lessee leases the equipment to provide finance and use the equipment for a specific period.
Lease rentals are calculated by deducting the second hand value of the equipment from the cost of the equipment plus all related costs and finance costs during the lease term.
Usage, repair, maintenance and insurance costs belong to the lessor.