Any legal entity periodically needs to be updated or replenished with fixed assets, which leads to significant costs. Naturally, for large-scale companies this is not a problem. But if the company is small, then its financial capabilities are not so wide, which means that you can not do without a loan. That is why today legal entities often resort to a service such as leasing.
The essence and main types of leasing
Leasing is a type of investment activity that competently combines lending and leasing components in its structure. In the process of concluding a leasing agreement, as in the case of lending, an analysis of the financial capabilities of the client is carried out, while the assessment methods are completely the same. This fact can be explained by the fact that the leasing company, like the lending bank, invests money in the purchase of certain property at the request of the lessee. Returning funds invested in the transaction is one of the key tasks of the lessor. What, for example, does operational leasing and rental have in common? Of course, this is the transfer of specific property for use, for which the client pays lease payments.
In the literature there are four main types leasing: financial, international, repayable and operational (operational) leasing. It is important to note that in the Russian Federation the first species is the most common. To assess the overall picture and form appropriate conclusions, it would be advisable to analyze each of the types of leasing and identify their main distinguishing features.
Operational leasing
Let's get it right. Operational leasing is a leasing that is not financial. That is, the risks in relation to the ownership or operation of the leased asset are not transferred to the lessee (in other words, it is called the tenant). In turn, the lessor (lessor) displays this property in the balance sheet.
It is important to note that the operating lease agreement is concluded for a period of time not exceeding the depreciation period of the leased assets, and also provides for the return of property to the owner when the contract is no longer relevant (ceases to be valid). In the case of operating leases, the lessor assumes insurance, maintenance and other activities. Thus, the total lessee’s payments often do not cover the lessor’s expenses in relation to the acquisition of assets, therefore the contract is concluded repeatedly.
Features of operational leasing
Among the key features that endowed operational leasing, it should be noted the cost in excess of the costs of financial leasing. This can be explained by the fact that the costs of registration, maintenance and, as a rule, insurance are borne by the lessor (he is also the owner of the property leased). In addition, the term of an operating lease agreement is significantly shorter than the warranty period for the operation of assets. Thus, a company providing leasing services has the opportunity to lease property for the so-called lease more than once, while earning approximately the same profit. Naturally, with each new delivery of assets, profit decreases, which can be explained by depreciation of property. Of course, the price is getting a little lower. And this is good news for lessees. That is why operational leasing of cars or other mechanized equipment is very common today.What is the difference between an operational variety and a financial one?
Financial and operational leasing: distinctive features
The operating room differs from the financial one, first of all, in that after the expiration of the lease agreement, there is no transfer of assets to the lessee's property, but their return to the lessor. In addition, the conclusion of a financial leasing agreement indicates a long-term transaction (for example, in the case of the purchase of expensive equipment and cars, this period of time can reach ten years). It should be noted that the period should in no case exceed the guaranteed life of the assets. As noted above, operating leases cost the tenant a bit more. But such expenditure items as registration, maintenance and insurance are the responsibility of the landlord.
Benefits of Operating Leasing
As a result of the analysis of operational leasing and its comparison with financial, some conclusions can be drawn. Thus, operating leasing has several advantages:
- Elimination of the need to attract borrowed capital, as the optimal balance of borrowed and own funds is always maintained in the company's balance sheet.
- Costs associated with the acquisition and further servicing of assets are allocated evenly over the period of the operating lease agreement. Thus, it is appropriate to release funds, for example, to invest in other equally interesting projects of the company.
- As noted above, this type of leasing already includes insurance, maintenance and registration expenses in its structure, which allows you to distribute financial flows in accordance with the emphasis on the core business of the company.
- The planning and budgeting process is simplified, because the size of payments stipulated by the leasing agreement is predetermined.
- The tax base is optimized: leasing payments are included in cost and reduce the tax base for income tax. In addition, the value added tax on leasing payments is fully refunded.
What about operational leasing in Russia
Unfortunately, today in Russia the operating leasing of the company has practically disappeared. Programs of this type are relevant only for some companies that provide leasing services. As a rule, they are engaged in car leasing. Such a deplorable state is mainly associated with the presence of significant contradictions that arise in modern times between legislation and the nature of operating leasing itself. More specifically, when re-transferring assets to leasing that were returned to the leasing company by the lessee in accordance with the terms of the contract, one of the conditions stipulated by the legislation regarding leasing is excluded: acquisition of assets for leasing to a certain lessee.
