Financial Leasing for buying new equipment
A company has a good investment project or technology improvement project, but does not have enough fund or does not want to pay for the equipment or technology improvement in a lump sum.
The company (the lessee) that wants to buy the equipment chooses the equipment it intends to buy at first, settles the conditions such as specifications, quantity, price and so on and makes the application to China Huarong Financial Leasing (the lessor). The lessor will buy the equipment from the supplier according to the application of the lessee and lease the equipment to the lessee to use. During the lease term, the lessee pay rent to the lessor. After the expiration of the lease term, the equipment belongs to the lessee.
Purchase, update and technology improvement of production lines, complete equipment, a series of equipments or individual equipment, purchase of cars, ships, airplanes and other big transportation facilities and etc.
(1)The lessee chooses the equipment by itself and owns the right to use the equipment.
(2)The lump-sum payment, credit and many customer resources of the lessor will help the lessee get a more favorable equipment price.
(3)The lessee can allocate the fund for the equipment to a more urgently needed usage. The lessee will be more flexible in finance.
(4)The lessor makes a customized financing plan and rent payment plan for the lessee. The lessee will have a more stable cash flow.
(5)The rent paid by the lessee in installments is recorded as cost, which will have a better tax-saving or postponing result.
(6)After the lessee pays up the contracted rent, it will hold the ownership over the equipment.