The concept of leasing and leasing operations

Introduction

1. Concept and essence of leasing
1.1 The concept of leasing and leasing operations
1.2 History of the lease and its role in the modern economy
1.3 Objects and subjects of leasing

2. Types of leasing
2.1 Classification of the lease on various grounds
2.2 Advantages and disadvantages of leasing

Methodological approaches to the determination of the lease payments

Conclusion

References

Introduction

Leasing - as a modern form of rent is defined as the type of business activities aimed at investing temporarily idle or borrowed funds when under financial lease (leasing) the landlord (lessor) agrees to acquire ownership of the property from the contract due to a particular seller and give the property to the lessee (lessee) for temporary use for business purposes.

Object of leasing can be any movable and immovable property belonging to the current classification as fixed assets, other than property banned for free circulation on the market.

Leasing entities are: the lessor - a legal entity engaged in leasing activity, ie leasing contract specifically acquired for this property, or a citizen engaged in entrepreneurial activities without forming a legal entity and registered as an individual entrepreneur. Subjects of leasing can be enterprises with foreign investment.

Lessee - a legal entity carrying on business, or a citizen engaged in entrepreneurial activities without forming a legal entity and registered as an individual entrepreneur receiving property for use under the lease agreement.

Seller leased property - the manufacturer of machinery and equipment, or other legal entity, or a citizen, to sell the property that is the object of leasing.

Importance of the development of leasing in Kazakhstan, including the formation of the leasing market, due primarily to adverse state park equipment significant proportion of obsolete equipment, low efficiency of its use, there is no provision of spare parts, etc. One of the solutions to these problems can be leasing, which brings together all the elements of trade, credit and investment operations.

Nowadays most Kazakh enterprises lack of working capital. They cannot renew their fixed assets, to introduce the achievements of scientific and technical progress and forced to take loans. Enterprise to upgrade its assets profitably takes equipment leasing. Form reconciles the contradiction between leasing company, which has no funds for modernization, and the bank, which is reluctant to provide credit to this company because they do not have sufficient guarantees of a return on invested funds. Leasing operation is beneficial to all involved: one side gets the credit, which pays in stages, and the necessary equipment; the other side - a guarantee of loan repayment, as the object of leasing is the property of the lessor or bank financing lease transaction until receipt of the final payment.
The objectives of the development of leasing in Kazakhstan, stood before the country's economy, are renewal of production assets, improving product competitiveness and efficiency of investments.

Concept and essence of leasing

The concept of leasing and leasing operations

Assumed that leasing is an American invention 50s, which were transported through a decade of American entrepreneurs in Europe and then in Japan. However, many experts do not agree with this view of the history of leasing and argue that economic relations, such lease have been known long before our era.

English terms «leasing», and «lessor» and «lessee» (the part of the leasing agreement) do not have adequate translation into Kazakh language. Many European scientists recognize the difficulty of translating the term "leasing" in other languages ​​. Square "sis" in Greek means dissolution, and English - rent, lease. Therefore, in view of the fact that the term "leasing" already firmly entrenched in everyday life and is used in both domestic and foreign literature, it is impractical, likely to translate it all.
The main idea of ​​leasing is that for profit does not necessarily have the means of production owned by, you just have the right to use and monetize.

Therefore, leasing allows entrepreneurs at the time of business formation start production activities, not having a significant capital base.

In theory and in practice, leasing is characterized by the following definitions:

1) A method of lending business;

2) A form of long-term lease;

3) The method of purchase - sale of means of production, or use of another's property;

4) Investment activities.

On the one hand, leasing its content corresponds credit relations (a loan for the purchase of productive assets). The lessor provides the lessee financial service acquiring the property from the manufacturer (seller) for the full cost to the property , and the lessee shall reimburse this cost periodic payments to the lessor , which include , by analogy with the lessor's credit costs for the purchase and maintenance of the property ( the loan amount ) and interest payments on him.

You can also compare the leasing relationship with granting the lessor to the lessee of commercial credit to the contract of sale with installment payment for the property transferred to the leasing, in the form of lease payments.

On the other hand, leasing is closely linked with the leasing mechanism. And in the Civil Code of the Russian Federation lease is treated as a finance lease, and the lease agreement - as a separate subspecies long term lease.

In fact, the totality of all of these definitions best reflects the economic substance of the lease. The combination of both properties of a credit transaction, investment and rental activity forms a new organizational and legal form of business - leasing. In this form, implemented a set of property relations associated with the transfer of the means of production by the temporary use of their purchase and subsequent lease.

Thus, leasing is a complex three-way deal in which the Finance leasing company (lessor) purchases from the company - manufacturer of movable or immovable property and transfers it to the disposal of the company - the tenant - the lessee.

Relationship between the parties leasing transaction can be described as follows: The future lessee needing certain types of property selects the supplier and due to lack of sufficient funds for the purchase of property to the lessor looks to the future with a request for his participation in the transaction. Contract can also be provided that the choice of supplier and the purchased property by the lessor. Lessor for its own or borrowed funds is purchasing this property and preserving the ownership of the leasing transaction, transmits it to the lessee under the lease agreement.

The lessee is entitled to use the acquired property and during the term of the lease shall pay the lease payments in the manner, timing, and form and subject to the conditions stipulated in the leasing contract.
There lease transactions that do not fall under several " narrow " definition of the Russian leasing , but are considered to be established in many countries.
For example, Russian law is not considered an operation lease deal with property that cannot be used for business purpose, although in other countries, these transactions can be considered leasing.
Thus, the concept of leasing has many interpretations, which also depend on the history of development of leasing relations and legislation of each country. Features of the Kazakhstan legislation in respect of the lease will be considered by us further.

1.2 History of the lease and its role in the modern economy

History of the development of leasing in Kazakhstan.

Leasing in many countries became widespread in the 70 years of the twentieth century and has since been considered the most appropriate way of organizing business. Currently in Kazakhstan, many enterprises are not able to make large investments of funds in technical updating and intensifying production, so in our opinion it is necessary to significantly expand the scope of leasing as a form of entrepreneurial activity.

Difficulty in assessing the origin of leasing as a financial instrument is that the literature on this subject, there are a variety of views. There are two basic approaches:

- Historical and dialectical, in which, based on the identification of finance leases and traditional, it is believed that “the operation of” leasing originated in ancient times and the modern idea of ​​leasing was borrowed;

- Proving the absence of historicism in the leasing industry: states that leasing - a young phenomenon, the appearance of which is associated with the action of «Bell».

In most studies on the history of the lease states that Aristotle touched leasing ideas, expressing its philosophical meaning. We believe that Aristotle wrote about the right to use that requires, first of all, the right to use the object owner. Link to Aristotle is only valid as a definition of the basic idea of leasing. The evaluation of all the facts obtained in the framework of the historical method and its projection on the existing reality, suggests that the idea of leasing is borrowed from history, but its mechanism is formed in the twentieth century.

Analysis of global trends in the development of leasing allows you to select two groups of factors that promote its spread: the objective associated with the laws and characteristics of the development of scientific and technical progress; subjective predetermined socio-economic policy of the state and overcoming psychological barriers. The most important features immanent leasing business abroad: increasing the share of short-and medium-term agreements and the share of leasing objects of industrial purpose, used in high-tech industries; demarcation between the lessors under the nomenclature of lease assets. We can expect that the individual stages of development of leasing in Kazakhstan should be faster or combined, which is premised on the positive foreign experience, infrastructure, the objective need of new enterprises in the financial and investment mechanisms, etc.

The role of leasing in the modern economy to ensure sustainable economic development is required to provide both increased production and aggregate demand and increase investment in order to meet growing demand. In solving these problems, can play a significant role leasing. Tool lease financing is an important determinant of economic growth, contributing to an increase in the production of goods and services through the creation of new production capacity, increasing aggregate demand, and investment resources.
Leasing is part of market commercial finance, namely its medium and long component; short part here is factoring. In the last few years leasing in Russia became a profitable way of investing that effectively allocate available funds. For banking leasing moreover means expanding diversification of operations and an active search for customers.

Economic entities leasing provides plenty of opportunities:
1. raising capital from external sources. Leasing allows you to get the equipment in use without full payment, to organize a new production without withdrawal from circulation of large financial resources. Any enterprise to upgrade production on the basis of modern technologies, adaptation to market and product quality, to compete with the best foreign analogues, does not require an initial allocation of significant funds.

2. Ability to quickly mobilize the necessary resources. Thanks leasing consumer receives favorable conditions for renewal of fixed assets.

3. Possibility of temporary use technology to solve production problems arise, rather than the acquisition of its ownership (when operational leasing).

4. The opportunity to try the equipment to its full payment, ie, before the acquisition of the property.

5. Ability to follow scientific and technological progress, acquiring new equipment. Lessee can get rid of obsolete equipment before the end of its useful life and implement the necessary re-production in the event of more efficient models.

6. Possibility of acquiring supplied equipment leasing at the best market prices. And the lessee and the lessor are interested in minimizing equipment costs. As a rule, the lessor has the better chance of achieving the minimum contract prices than the lessee.

7. Opportunity not to attract their own borrowing. Leasing does not burden the assets of the company and helps to maintain the optimal ratio of debt to equity. As a rule, the leasing object is listed on the lessor's balance sheet.

8. Get wide range of related services for product adjustment and maintenance of the equipment purchased. Consumers spared from many cases, they do not delve into the technical details. Leasing companies eliminate defects and service equipment, relying on the material-technical base of specialized enterprises, or on your own.

9. Possibility of making flexible lease payments, taking into account the seasonality of the business of the lessee.

10. The use of additional tax benefits. User equipment lease payments are charged to cost of production and, consequently, reduce the tax base, the amount of taxes for the payment of the budget.

Leasing services among consumers deserve special attention small businesses. Own funds of small businesses are small and access to bank loans is often limited. For them, leasing is one of the most accessible sources of funding. Initial costs of equipment leasing company bears, which in turn are interested in supporting small business, have. Equipment for small business is relatively inexpensive, and is sufficient collateral leasing transaction. In contrast to the leasing of large expensive facilities (aircraft, sophisticated high-tech equipment ) , a feature of leasing objects allows for small businesses to diversify risks arising between many midsize deals with different clients , reduce the probability of default of the lease payments .

By leasing, may run in Kazakhstan, the process of large-scale modernization of the economy. With the rapid growth of the Kazakhstan economy and high level of depreciation of fixed assets in the country formed an enormous investment demand for renovation and expansion of production. In the world practice is leasing is one of the most important sources of financing renovation and expansion of fixed assets. The share of leasing in the amount of fixed capital investment in the advanced economies is about 20-30%, in our country - less than 15%.

Consolidating the leasing certain benefits, the government encourages investment activity in the field of modernization of the means of production. Under these conditions, with estimated 2009 cancellation opportunities for accelerated depreciation of fixed assets related to amortization groups 1-3 significantly delay the development of leasing in our country , and hence the process of growth and economic renewal.

Acceleration upgrade equipment and technologies in wide use leasing increases productivity, reduces resource consumption, capital intensity, increases the quality of the products, accelerate capital turnover, which leads to increased efficiency of the national economy.

Significantly accelerate the development of leasing is possible only by eliminating inconsistencies and flaws in the legislation. Classic benefits of leasing (accelerated depreciation, the automatic use of the leased asset as collateral ) , as well as the lack of " long" money banks have already led to the fact that leasing is actually replaced the medium and long term bank loans in the event of having to purchase fixed assets. Greatest obstacles to further extensive development tool lease financing are flaws in the legislation, resulting in inconsistencies law on leasing with other regulations. Should be clearly defined in the legislation procedure (and sequence) registration of rights to real estate and real estate leasing agreements relevant; creating a system of state registration of rights in aircraft to confirm ownership of lessors; introduction to the tax and accounting legislation rules governing balance- shift change during the term of the lease agreement; clear definition of the concept in the regulatory framework of the redemption value of the property.

State by adjusting the conditions of lease financing (giving him various advantages such as tax benefits and opportunities of accelerated depreciation) should use leasing as a powerful incentive for modernization of production, the restructuring of the Kazakhstan economy, the expansion of production capacity, saturation of the market with high quality goods.