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One, the lease option reason

At present, with the rapid development of domestic economy and land increasingly tense, rising human cost plusdemand forklift, forklift trucks and other transportation equipment and high altitude operation equipment is more and more big, the requirement makes such equipment sales increased rapidly, more and more enterpriseschoose to purchase all kinds of material handling equipment and aerial equipment to replace the manual operation, improve work efficiency. However, not all enterprises, use of these devices are particularly high rate.Buy back a lot of enterprise equipment, use frequency is relatively low, and some even a year to use several times, other time is idle. So the leasing business for this type of enterprises, is a very good choice. There are some other temporary work demand or sudden growth operation requirement and equipment repair emergencyneeds are important reasons to need to choose rental business.

Below we analyse several advantages to choose rental business.

1, funds and cost:

Does not occupy a large liquidity: Leasing rent is generally monthly or quarterly installments micro payment,compared to buy disposable full large payment and leasing business can make enterprises will be more liquidity in places where they are needed most, bring more profit for the enterprise.

Do not occupy the enterprise loan amount: the use of leasing way, enterprises need not loans to buy theequipment, saving the enterprise valuable bank loan amount, can let the enterprise bank loan amount is needed most.

To reduce the cost of enterprise management: the way of rental, enterprises with no maintenance and management personnel, save enterprises in equipment maintenance, maintenance and management of manpower, material and financial resources.

2, the financial aspect:

Reasonable tax avoidance (less pay enterprise income tax and value added tax): rent can be used as the currentoperating expenses in the income tax deductions, so that enterprises pay less income tax (saving amount = rent *tax rate), and the purchase of the expenditure income tax deductions; according to the current policy, rentcontains value-added tax can be used as the input tax of enterprise from the output tax deductible, so that enterprises pay less value added tax.

Reasonable to beautify the corporate financial statements: according to the provisions of accounting standards: rent can not counted as liabilities of enterprises; to use the lease assets can not enter the fixed assets of enterprises, so reasonable "beautify" the enterprise financial index, better to win the trust of investors and banks,to get more investment and Bank loans.

Financial operation is simple: for capital budgeting, simplify the financial accounting procedures. The large amount of purchase products in general need layers of approval, procedures and trouble. But the leasing operation easier.

3, the use of:

Convenient equipment update: buy equipment general amount is higher, and the value of the equipment but willwith the passage of time and gradually reduce. Leasing equipment make convenient for enterprises to update equipment, and removed the depreciation expense high distress.

At any time to meet the use requirement of equipment: the use of equipment, the enterprise needs temporaryseasonal, by leasing way can immediately satisfy enterprise's demand for cars, without the need for temporaryuse needs to go through all the complex processes of the purchase of equipment.

Avoid equipment technical obsolescence risk: because of lease relative to the economic life of equipment forshort, can be conveniently replaced after the expiration of the old equipment, equipment renewal, so as to avoidequipment technical obsolescence risk.

Two, leasing business in general can be divided into long-term and short-term lease rental:

1, long-term lease: refers to the client need long-term lease equipment, contract by per year. The general customers signed more than one year (not including one year) five years of the contract.

2, the short-term lease: refers to the client only need to use the equipment in the short term. As the amount of work a temporary increase, the seasonal demand or other equipment is under repair and emergency needs of thelease.

Short term lease time usually about 1-12 months. Lease duration of 1 weeks.