Chapter 8
Leasing project decision-makingI. Risks in leasing transactions and possible risks in preventing leasing transactions include: (1) operational risks. The risk that the third party shall not perform performance on time in whole or in part. (2) political risks. Risks arising from regime changes and policy changes in the Import and Export leasing business to the lessor and the lessee. (3) exchange rate risks. Risks arising from exchange rate changes to the parties involved in the lease transaction. (4) interest rate risks. The risk arising from the change in interest rates to the parties involved in the lease transaction. (5) Tax risks. Risks arising from changes in tax rates and preferential tax conditions. (6) Risks of technological backwardness. It refers to the risk of loss caused by the development of science and technology resulting in the relatively low rental of things technology. (7) risk of loss of rental items. It refers to the risk of losses arising from the transportation, installation and use of rental items. The lease risk prevention measures include: (1) conduct in-depth and meticulous credit consultation and investigation on the leasing parties prior to the deal, and clarify the constraints and responsibility conditions in the contract, pay attention to the value and security of rental items during the lease period. (2) political stability and Foreign Exchange Management of relevant countries should be estimated in view of political risks. (3) for exchange rate risks, you can: A shall accept the soft payment and properly select the currency in the transaction; B shall use the transfer liquidation method to offset each other, that is, opening accounts and accounting for each other, one settlement; C. Using the foreign currency hedging clause, the interest rate on the date of signing the contract will be fixed, and the actual payment will be settled at this exchange rate; D. Conducting forward foreign currency trading; e. Use a basket of currencies to match strong and weak currencies with stable exchange rates; F soft coins; G swaps, such as interest rate swaps, currency swaps; H option transactions; I predict the direction of exchange rate changes, settlement of foreign currency in advance or lagging behind; j hedging; k swaps. (4) For interest rate risks, the direction and magnitude of interest rate changes should be predicted to determine the use of floating or fixed interest rates and interest rate types, or add interest rate clauses in the lease contract. (5) tax risk changes should be stipulated in the lease contract. (6) In view of the risks of technical backwardness, the focus is on the feasibility study and Prediction of leasing projects. (7) the risk of loss of rental items should be covered. L interest rate exchange: the two borrowers exchange interest rate and debt of the same currency with each other for mutual benefit, it can change its existing assets-type liabilities to another interest rate. L currency exchange: the two sides have complementary needs to swap debts or investments in different currencies for profit. L option: it refers to the right of people to buy or sell a certain currency at an agreed option price within a certain period of time. An option can be used by an option buyer because the option is currently used, and the option is not used when the option is not used. L hedging: refers to the forward foreign currency that is expected to be spent or earned in a certain period of time in order to avoid the loss caused by exchange rate fluctuations, the same period of time for the purchase or sale of the same amount. This operation can be divided into two types: Buy period and sell period. L transaction adjustment period: refers to the forward (or immediate) of the same currency that a trader sells or buys for a certain amount of currency at the same time as the current (or forward ). Ii. What aspects does the leasing company mainly review the leasing application? Based on the characteristics of the leasing business, the review of the leasing application mainly involves the following four aspects: (1) project technical and economic feasibility review. This includes review of the feasibility of the leasing project in terms of policy, technical, and economic aspects. (2) The suitability review conducted by the project on lease. That is, it is more appropriate to review the project by leasing or other means. (3) the lessee's solvency review. The solvency of the lessee depends on the credit status, business management capability, and profitability of the lessee. The review response is carried out from these three aspects. (4) Review of the guarantee conditions and the conditions for realizing the rental property. The guarantee includes the guarantee for the lessee's performance of the obligation to pay the rent and the guarantee for the residual value of the lease property when the lease contract expires. The review of the guarantee conditions mainly includes the review of the guarantor and the guarantee product, the review of rental property realization conditions mainly includes the review of rental property universality, technology update cycle, and second-hand market activity. Iii. What are the two common methods used by the lessee to conduct Decision Analysis on leasing projects? How do I make decisions on leasing projects? The two common methods used by the lessee to conduct Decision Analysis on leasing projects are as follows: (1) Comparison cost Current Value Method: consider the time value of the currency to compare the costs incurred in different periods into the present value. This method can be used when the project investment benefits cannot be estimated or different project benefits are different. (2) Compare the net present value method: the difference between the present value of the future cash inflow of the lease project and the current value of the cash outflow of the lease project. If the calculation result shows that the net present value is positive, the return rate obtained by the lease project is greater than the discount rate used. Otherwise, the return rate of the lease project is less than the discount rate used. This method can be used if the project's investment benefits can be estimated by the lessee or different project benefits are different. These two methods can be used not only for Decision-Making Analysis of a single investment project, but also for comparative analysis of different schemes of different investment projects or the same investment project, such as the evaluation of different leasing schemes, the evaluation of leasing and purchasing schemes, etc. Example: (1) an enterprise intends to rent a set of equipment to the leasing company for a period of three years with an annual interest rate of 10%. The discount rate is the same as the interest rate. It is estimated that after the device is put into production, the annual net cash flow is as follows (unit: RMB ). Is the benefit of this leasing project feasible?
| Duration |
Net cash flow |
| 1 |
-250 000 |
| 2 |
100 000 |
| 3 |
220 000 |
Solution: according to the formula of net present value, because NPV is greater than 0, the benefits of this lease project are feasible. (2) An enterprise wants to rent a device for a period of three years with an annual interest rate of 10%. The discount rate is the same as the interest rate. There are two schemes available: Solution A: the lease period is three years. Except for the rent paid by the lessee at the end of each year, an additional 80000 yuan will be paid to the lessor at the end of 3rd, the investment tax reduction discount is covered by the lessor's insurance. Solution B: the leasing period is three years. The lessee pays 39900 yuan for the rent every six months, prepaid the rent for two periods, and transfers the investment tax reduction discount of 20000 yuan to the lessee. Which of the following solutions is advantageous to enterprises? Solution: you only need to compare the current cost values of the two solutions. (PC) A = 80000 × (PA/a, 10%, 3) + 5000 × (P/F, 10%, 3) = 202709 RMB (PC) B = 39900 × (PA/a, 5%, 4) + 39900 × 2-20000 = 201285 RMB because (PC) B <(PC), therefore, solution B is advantageous to enterprises. 4. Why does the lessee analyze the leasing organization's preferred choice? How to perform optimization analysis? The necessity of Optimal Analysis for leasing organizations is as follows: (1) leasing costs can be reduced. (2) interest expenses can be reduced. Good leasing companies can obtain preferential policies, obtain low-interest loans, and transfer the loans to the tenants. (3) ensure the quality of the deal contract. The specific optimization analysis mainly includes the following aspects: (1) credit of the leasing organization. Credit is a comprehensive evaluation of the leasing Organization's past business performance. It can accurately reflect its business attitude and level. Credit is mainly used to evaluate its past performance. (2) the economic strength of the leasing organization. Generally, leasing costs of leasing organizations with strong capacities are relatively low. (3) Quality of the lease contract. The quality of the lease contract is closely related to the enterprise's own interests, thus affecting the choice of the leasing organization. (4) rental fee collection standards and methods. In addition to the rental level, the number and time of rent payment, the calculation of deposit, residual value, and handling fee should be the basis for the lessee to determine whether the rental institution charges fees are reasonable.
