RSS
ENCN

Financial Lease

What is a finance lease?

Following the lessee’s choice of suppliers and the assets subject to the lease, the lessor purchases the assets from suppliers and leases the assets to the lessee who pays rental in return for the use of the assets.

The lessor retains the ownership of the assets and charges rental for them, while the lessee enjoys the right of use the assets over the term of the lease contract.

At the end of the lease, the lessee can benefit from a purchase option of the equipment, as defined in the lease contract.

Why use a finance lease?

  • Enjoy tailor-made payment schedule;
  • User-friendly structure with speedy credit check, processing and funding;
  • Save valuable working capital or(and) credit line for operation;
  • A commercial general VAT payer can reclaim the VAT portion of the rental invoice issued by lessor.

 

Standard Operation Process: