Leasing
The Ministry of Education and Science of the Russian Federation
Plekhanov Russian University of Economics
Chair of Foreign Languages
PROJECT
“Leasing as a method of Financial Management”
Project defended on:
__2012__
Evaluation:
______________________
Tutor’s signature:
______________________
Moscow 2012
Contents
Introduction 3
1. Basic theoretical aspects of leasing 4
1.1. What leasing is 4
1.2. Types of leasing 5
1.3. Principles of leasing 7
1.4.Leasing cycle 8
2. Trends and examples of leasing 10
2.1. Green leasing 10
2.2. Structure of a leasing company 11
2.3. Reasons for leasing, not owning 12
2.4. Pitfalls of leasing 14
3. Practical options of leasing 16 3.1. 8 aspects of leasing 16
Conclusion 20
References 21
Glossary…………………………………………………………………………………………………………………………………………………22
Introduction
Leasing is an old method of financing which is now gaining popularity almost in whole world. Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments.
Legally, the lease contract is not a sale of the object, but rather a sale of the usufruct (the right to use the object) for a specified period of time. Under it, there are two parties one is the owner or lessor of the asset and other is the lessee or the party that takes the asset on lease. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets. The lessee takes the asset for use for a specified period of time and makes rental payments. The ownership of the asset rests with the lessor but it is in the possession of lessee and right of use is also transferred to lessee. The relationship between the tenant and the landlord is called a tenancy, and can be for a fixed or an indefinite period of time (called the term of the lease). The consideration for the
Plekhanov Russian University of Economics
Chair of Foreign Languages
PROJECT
“Leasing as a method of Financial Management”
Project defended on:
__2012__
Evaluation:
______________________
Tutor’s signature:
______________________
Moscow 2012
Contents
Introduction 3
1. Basic theoretical aspects of leasing 4
1.1. What leasing is 4
1.2. Types of leasing 5
1.3. Principles of leasing 7
1.4.Leasing cycle 8
2. Trends and examples of leasing 10
2.1. Green leasing 10
2.2. Structure of a leasing company 11
2.3. Reasons for leasing, not owning 12
2.4. Pitfalls of leasing 14
3. Practical options of leasing 16 3.1. 8 aspects of leasing 16
Conclusion 20
References 21
Glossary…………………………………………………………………………………………………………………………………………………22
Introduction
Leasing is an old method of financing which is now gaining popularity almost in whole world. Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments.
Legally, the lease contract is not a sale of the object, but rather a sale of the usufruct (the right to use the object) for a specified period of time. Under it, there are two parties one is the owner or lessor of the asset and other is the lessee or the party that takes the asset on lease. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets. The lessee takes the asset for use for a specified period of time and makes rental payments. The ownership of the asset rests with the lessor but it is in the possession of lessee and right of use is also transferred to lessee. The relationship between the tenant and the landlord is called a tenancy, and can be for a fixed or an indefinite period of time (called the term of the lease). The consideration for the