Equipment operating leasing
A company only wants to rent transportation facilities or general equipment instead of buying them or owning them permanently.
The user (the lessee) of the transportation tools or general equipment makes operating lease application to China Huarong Financial Leasing (the lessor). The lessor rents the equipment or transportation tools it owns or buys according to the demand of the lessee to the lessee to use in the agreed period. The lessee pays the rent and returns the equipment or transportation tools to the lessor after the expiration of the lease term.
Transportation facilities such as cars, ships, airplanes, general engineering machinery and equipment, and etc.
(1)Temporary or short-term use of general equipment. The time is flexible. The lessee returns the equipment after using it without worrying about the idleness of the equipment.
(2) The lessee does not need to buy the equipment but pays the rent during the lease term;
(3) The equipment is owned by the lessor and is not listed in the balance sheet of the lessee. The lessee does not bear the risk of devaluation of the equipment or the residual value risk of the equipment;
(4) The rent paid by the lessee is recorded as cost, which will have a better tax-saving or postponing result.
(5) After the expiration of the lease term, if the lessee wants to continue to use the equipment, it may discuss with the lessor to extend the lease term or change it to financial leasing or buy out the equipment, which is flexible and controllable.