Interest on leasing payments. The difference between leasing and credit

Evgeniy Malyar

Bsadsensedinamick

# Business nuances

Amount of leasing payments

Article navigation

• What is meant by lease payment?
• Relationship between the payment schedule and the depreciation method
• Calculation of leasing payments in 2019
• Fixed amount method with and without advance payment
• Payment minimization method
• Features of calculating payments for operational leasing using an example
• Calculation of leasing payments with non-linear depreciation methods in Excel
• Calculation of effective leasing rate
• Calculation of effective leasing interest rate in Excel
• What is the leasing appreciation rate?
• Benefits of leasing for legal entities

In a row in various ways acquisition of assets, leasing is distinguished by its relative accessibility, simplicity and speed of registration. However, as you know, any advantages and conveniences cost money. Is this service expensive? Is it profitable? Only consideration of the conditions of each specific case allows us to reliably answer this question. An article about what a lease payment consists of and how to calculate it correctly.

What is meant by lease payment?

It is necessary to distinguish between monthly payments under the terms of a financial lease with a leasing payment. They are often confused.

The leasing payment is the sum of all monthly installments plus the advance payment and the purchase price of the subject of the financial lease, taking into account the interest of the lessor.

The above definition takes into account generalized conditions. For example, the purchase price for financial leasing may not be formally indicated, but this does not mean its absence - in this case it is simply included in regular lease payments, and after the expiration of the contract, the item automatically becomes the property of the lessee. The same applies to an advance payment - in some cases the parties can do without it.

Lease payment structure:

• depreciation of property during the term of the financial lease agreement;
• the accrued cost of using borrowed funds spent on the purchase of an item;
• payment for additional services received by the lessor during the purchase, maintenance, delivery and other activities ensuring the completion of the transaction;
• redemption price (in the financial form of leasing);
• commission constituting the commercial interest (profit) of the lessor;
• advance payment, if provided for in the contract.

After the total amount of the lease payment has been formed (that is, the contract price), a schedule for its repayment in separate installments is drawn up, with their frequency established.

Theoretically, leasing has the following forms of payments:

• Monetary.
• Compensation in kind, in which the lessee (LP) pays for goods or services produced through the leased fixed asset.
• Mixed. Provides a combined cash-in-kind method of payment for financial lease.

In practice, the most common in domestic conditions are cash payments. The inclusion of natural forms significantly complicates accounting. At the same time, the lessor (LD) will not accept a product of questionable liquidity as payment, and if the product sells well, then the LP sells it himself.

Relationship between the payment schedule and the depreciation method

Depreciation of the subject of a financial lease makes up a large share of the lease payment. At its core, it is part of the price of the property written off during the settlement period. In this case, the advance and redemption value should be subtracted from the total amount, if they are provided for in the contract.

Depreciation can be calculated using one of the following methods:

• Linear. The simplest one, in which the cost of a fixed asset gradually decreases in a straight line to zero over its useful life.
• By accelerated reduction of residual value. An acceleration coefficient is introduced into the linear formula.
• Reducing balance. The accelerated method, in which not the initial, but the annual book value at the beginning of the period is taken as the basis.
• Cumulative. The initial cost is divided by the so-called “cumulative number”, which is the arithmetic sum of the years remaining until the end of its useful life.
• Industrial. The rate of depreciation depends on the intensity of use of the object of labor.

Based on the listed depreciation methods, the following types of payments under a leasing agreement are distinguished:

• Annuity. The total amount is repaid equal amounts trenches. Compliant linear method depreciation.
• Regressive. The maximum amount of a regular payment is the first, then it decreases. Applies if depreciation is calculated using all other methods (non-linear accelerated).
• Seasonal. Takes into account the frequency of the maximum solvency of the lessee.

In most cases, the lessor strives to ensure that the repayment schedule does not lag behind depreciation. Otherwise, his expenses will outpace his income, that is, financial results will be temporarily unprofitable.

In simple words, this can be expressed as the undesirability of depreciation of the leased asset faster than the lessor repays its value.

If this principle is violated, the interests of the property owner (LP) will be at risk. They must be guaranteed by his unconditional right to withdraw the item leased under financial lease in the event of the LP’s failure to fulfill its obligations.

Calculation of leasing payments in 2019

Before concluding a financial lease agreement, you should evaluate the size of the lease payments to determine whether the company can “bear” this load.

Fixed amount method with and without advance payment

The simplest method is to divide the fixed amount of the entire payment by the number of billing periods. To do this, you need to have the initial data:

• cost of the item;
• contract time;
• the amount of the initial payment (advance);
• average rate of commercial banks for using a loan;
• the size of the leasing company’s commission (in percentage or, if it is possible to find out, immediately in monetary terms).

The payment calculation formula is simple:

Where:
SLP – the amount of the leasing payment;
P – the price of the item from the seller;
A – advance amount;
ВС – redemption value;
K – cost of lending;
RDU - expenses for everything Additional services related to the acquisition;
KLD – commission due to the lessor;
SVAT is the VAT rate if the lessor is a value added tax payer.

Difficulties may arise if a regressive or seasonal calculation procedure is used.

With annuity repayment (in equal shares), everything is again simple: the amount of the lease payment is divided by the number of billing periods (most often months) specified in the agreement and constituting its validity period.

The individual components of this polynomial require explanation.

The redemption value (VV) is present in the formula only in the case of financial leasing, which provides for the possibility of transferring ownership of the item from the LD to the LP after the termination of the contract. It cannot exceed one fourth of the initial price. In other words, the item must be depreciated by at least 75%.

Advance payment (A) is also subtracted from the total amount in brackets only when the initial payment is specified in the terms of the contract.

The cost of lending (K) is calculated using the formula:

Where:
K – cost of lending;
DCR – the amount of credit resources used to purchase the item;
BS – annual bank rate;
T – duration of the contract in years (for example, if six months, then T=0.5).

Payment minimization method

Unlike the fixed amount method described above, this method is tied to the depreciation of the finance leased property. The calculation of the cost of each individual payment depends on what part of the total amount is written off from the balance. As a rule, it is used with non-linear depreciation methods (accelerated).

Where:
SLP – amount of lease payment
AM – the amount of depreciation of the leased property for the billing payment period;
K – cost of lending;
N – duration of the billing period;
T – duration of the contract in the same time units;
RDU – expenses for all additional services associated with the purchase of an item;
NP is the lessor's rate of profit, expressed as a percentage.

Thus, the lessor periodically returns the depreciated share of the property, additional costs and expenses for servicing the loan, along with standard profit.

Features of calculating payments for operational leasing using an example

The differences between operational leasing and financial leasing are a shorter tenure and the right to return the property to the owner after the expiration of the contract. Another feature is that the degree of depreciation of property over the period of use is much lower.

The lessor does not set the goal of a full refund of the costs incurred to purchase the item. It is enough for him that his initial cost will be compensated to a greater extent than the depreciation of the property.

At its core, operational leasing is similar to rental, although this form of rental has its own characteristics.

If the financial lease term is less than a year, the regular payment period is calculated monthly. In this case, all the previously listed components that form the price of the service are taken into account.

An example of calculating lease payments using the operational form of financial lease:

• The initial cost of the leased asset, including costs for additional services incurred by the lessor, is 6.4 million rubles.
• The contractual period for using the item is 8 months.
• The complete useful life of the item is 5 years.
• The discount rate on a loan taken by the lessor to purchase an item is 22% per annum for the entire cost of the item.
• The lessor's profit rate is 15%.
• VAT rate is 20%.

The lease payment amount is calculated using the general formula:

The amount of depreciation per month is calculated using the linear method:

Cost of using a loan per month:

Total costs of the lessor:

Value added tax:

Lessor's profit:

Lease payment amount:

You can check the result by multiplying it by 8 months.

VAT is deducted from this amount:

Now the sum of costs (depreciation and bank interest) for 8 months is multiplied by a factor of 1.15, taking into account the lessor’s rate of profit:

• Depreciation for 8 months is 106,666.67 x 8 = 853,333.33 rubles.
• Fee for using the loan 117,333.33 x 8 = 938,666.67 rubles.

Total 1,792,000.00

Plus 15% profit:

1,792,000.03 x 1.15 = 2,060,800.00 rubles, which is equal to the previously calculated amount of lease payments excluding VAT.

As already noted, the redemption value for operational leasing, unlike financial leasing, is not taken into account.

Online calculators are available to calculate the amounts of leasing payments. With their help, calculations are made very quickly and simplified as much as possible, but usually they take into account a limited choice of types and forms of debt repayment. An example of an online leasing calculator can be found here.

Calculation of leasing payments with non-linear depreciation methods in Excel

Calculations using the considered methodology become technically more complicated if depreciation is carried out by one of nonlinear methods, for example, by reducing balance. In this case, it is advisable to use a table in Excel, in which the book value of the leased asset is automatically reduced by the amount of accrued depreciation.

To do this, you should draw up a table in which the value of the property for the previous period (for example, a month) is multiplied by a coefficient equal to one minus the depreciation percentage for the same time.

Calculation of effective leasing rate

Leasing companies, as a rule, inform the client of the terms of service, indicate the main parameters: annual interest rate and advance amount. In addition to this data, upon concluding a contract, the client receives a calendar schedule of upcoming payments.

Adding all the amounts indicated in the schedule and dividing the result by the initial cost leads to a figure that differs significantly from the interest rate specified in the agreement.

The reasons are the additional costs of the lessor: payment for various related services, insurance, compensation and other expense items.

To determine the amount of real obligations, the concept of an effective leasing rate is used. It objectively shows how many times the cost of the item increases during the duration of the contract.

Calculation of effective leasing interest rate in Excel

Excel is just a tool for creating tables with formulas, but in addition to it there is a function called NET. It itself can be imported into Excel (menu “Formulas” category “Financial”), and greatly facilitate the process of creating an algorithm for calculating the effective leasing rate. The following data is required:

• calendar schedule of leasing payments;
• amounts of leasing payments.

What is the leasing appreciation rate?

The increase in leasing price per year in its meaning and numerical expression correlates with the concept of an effective rate. In both cases, the indicator demonstrates the real increase in the value of the item taken on financial lease. The difference is in the calculation formulas.

When calculating the effective rate, all actual payments are divided by the initial price:

Where:
ESL – effective leasing rate;
A – advance payment;
LP – the sum of all leasing payments during the term of the contract;
N – number of leasing payments during the term of the contract;
NCP – the initial price of the leased asset when purchasing it from the seller.

The formula for calculating the percentage increase in leasing prices is slightly different:

All designations given in the formula are available in the paragraph above.

The average annual increase in price of the leased asset is general meaning increase in price divided by the number of years of validity of the finance lease agreement. If time is measured by other periods (months, quarters), then the same principle applies to them.

LEASING: theory and practice of financing

Do you want to know everything about leasing? This book provides practical experience in the use of leasing in Russian organizations. Recommendations are offered for calculating leasing payments, reflecting them in accounting, drawing up and concluding contracts.

More details

Advantages of leasing for legal entities

As a rule, the leasing rate for legal entities. persons and other conditions do not differ from those offered to individuals. However, OSNO payers use the following advantages compared to the simplified tax system and UTII:

• Value added tax refund.
• Attribution of leasing payments to general production costs.

In addition, when leasing special and agricultural equipment, there are special programs offering minimal and even zero percent increase in price.

The rate on a car may be preferential if it is purchased by a legal entity from a leasing company that is part of one of the financial groups created by leading Russian banks(VTB Leasing, Sberbank Leasing, etc.) However, preferential programs are not available to all companies and provide for shortened terms of validity of financial lease agreements. Conditions are discussed individually.

(5 ratings, average: 5,00 out of 5)

Efficient interest rate for a loan (as well as almost any other financial instrument) is the expression of all future cash payments (receipts from the financial instrument) contained in the terms of the agreement, in terms of an indicator reduced to the annual interest rate. That is, this is the real rate that the borrower will pay for using the bank’s money (the investor will receive). This takes into account the interest rate itself specified in the agreement, all commissions, repayment schemes, and the term of the loan (deposit).

Calculating the effective loan rate in Excel

Excel has a number of built-in functions that allow you to calculate the effective interest rate, both taking into account additional commissions and fees, and without taking into account (based only on the nominal rate and loan term).

The borrower took out a loan in the amount of 150,000 rubles. Duration – 1 year (12 months). The nominal annual rate is 18%. We indicate the loan payments in the table:

Since the example does not include additional commissions and fees, we will determine the annual effective rate using the EFFECT function.

Call the “Function Wizard”. In the “Financial” group we find the EFFECT function. Arguments:

1. “Nominal rate” is the annual loan rate specified in the agreement with the bank. In the example – 18% (0.18).
2. “Number of periods” - the number of periods in a year for which interest is calculated. In the example - 12 months.

The effective loan rate is 19.56%.

Let’s complicate the task by adding a one-time commission when issuing a loan in the amount of 1% of the amount of 150,000 rubles. In monetary terms – 1500 rubles. The borrower will receive 148,500 rubles.

We entered 148,500 into the column with monthly payments with a “-” sign, because The bank first gives this money back. Payments that the borrower subsequently makes to the cash desk are positive for the bank. We calculate the internal rate of return from the bank’s point of view: it acts as an investor.

The function gave an effective monthly rate of 1.69%. To calculate the nominal rate, multiply the result by 12 (loan term): 1.69% * 12 = 20.28%. Let's recalculate the effective interest rate:

The one-time 1% fee increased the effective APR by 2.72%. Now: 22.28%.

We will add a monthly account servicing fee of 300 rubles to the loan repayment scheme. The monthly effective rate will be 2.04%.

Nominal rate: 2.04% * 12 = 24.48%. Effective annual rate:

Monthly fees increased it to 27.42%. But in loan agreement the figure will still be 18%. True, the new law obliges banks to indicate the effective annual interest rate in the loan agreement. But the borrower will see this figure after approval and conclusion of the contract.



What is the difference between leasing and credit?

Leasing is a long-term lease of transport, real estate, equipment with the possibility of their further purchase. The lessor acquires property and transfers it on the basis of an agreement to an individual/legal entity under certain conditions. The lessee uses the property (for personal/business purposes) and pays the lessor for the right to use.

Essentially, this is the same loan. Only the property will belong to the lessor until the lessee fully repays the cost of the purchased object plus interest for use.

Calculation of the effective leasing rate in Excel is carried out according to the same scheme as the calculation of the annual interest rate on a loan. Let's give an example with another function.

Input data:

You can follow the well-trodden path: calculate the internal rate of return, and then multiply the result by 12. But we use the function NET (returns the internal rate of return for the cash flow graph).

Function arguments:

The effective leasing rate was 23.28%.

Calculation of the effective rate on government bonds in Excel

OVDP – domestic government loan bonds. They can be compared to deposits in a bank. Since in the same way the investor receives a return of the entire amount of invested funds plus additional income in the form of interest. The central bank acts as a guarantor of the safety of funds.

The effective rate allows you to estimate the real income, because takes into account interest capitalization. For example, let’s “purchase” one-year bonds in the amount of 50,000 at 17%. To calculate your income, use the BS function:

Assume that interest is capitalized monthly. Therefore, we divide 17% by 12. We enter the result in the form of a decimal fraction in the “Rate” field. In the “Nper” field, enter the number of capitalization periods. We will not receive monthly fixed payments, so we will leave the “Pmt” field empty. In the “Ps” column we enter the amount of invested funds with a “-” sign.

The window immediately shows the amount that can be earned for the bonds at the end of the period. This is the monetary expression of accrued compound interest.

Buying a car on lease is a service that is gaining more and more popularity among Russian citizens every day.

Dear readers! The article talks about typical solutions legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:

APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.

It's fast and FOR FREE!

This method of acquiring movable four-wheeled property is an excellent tool for many investment, lending and other companies.

An agreement concluded on a leasing basis may also be called a financial lease. But before its conclusion, preliminary and final calculations must be made.

What initial data is needed?

The outcome of settlements is influenced by many factors that go into the transaction. These include interest rates, lease terms, and the amount of the down payment that a potential client can afford to make.

In addition, the original price of the car, its mileage, or whether it was brought directly from the manufacturer plays a big role.

To determine the exact amount of the residual value of the car that the client will have to pay at the end of the lease agreement in order for the property to be transferred to him, it is necessary to determine the initial data.

These include the following calculation parameters:

• car cost;
• terms;
• interest that will be accrued on the leasing agreement;
• the amount of the down payment;
• commission amount;
• appreciation rate percentage (or inflation rate);
• determination of VAT.

As a rule, modern IT technology capabilities make it possible to optimize the preliminary calculation as much as possible.

Now you can estimate in advance the approximate amount of cost by entering the above-mentioned initial values ​​into the appropriate fields of the online calculator, which is located on the website of a particular leasing company. But the final calculation still needs to be done through the services of a specialist.

Formula

For both parties - the lessor and the lessee, it is very important to determine. How much will a leased car cost as a whole? To do this, use the following formula:

X = Y – (C + O + %),

This formula, at first glance, may reflect a benefit for the lessor or for resellers of leased cars. But it is also useful for individuals who need to know how much they will pay if they purchase a car on lease rather than on credit.

However, the closest thing for motorists will still be a formula indicating the size of monthly payments, which looks like this:

LP = AO + PC + Kn + DU + Bn + VAT,

To more clearly imagine how the formula works in practice, you need to consider some approximate calculations.

Examples

Conditions of the problem:

The price increase is as follows: 1,000,000 rubles. / 100 * 5% * 5 years = 250,000 rubles for all 5 years. Now we apply this amount to calculate the entire leasing cost: 1,000,000 + 250,000 + 10,000 (1% of the redemption value) = 1,260,000 rubles.

Advance payment – ​​30%, which is taken from the cost of the car and amounts to 300,000 rubles. If the client pays it immediately, then we subtract the initial payment from the amount with the redemption price: 1,260,000 – 300,000 = 960,000 rubles. This is the amount that will be paid according to the schedule.

However, this is not all; a separate task is still the determination of rental payments, which are carried out according to its own scheme. Consider the following example of such calculations.

After this, correction factors are also applied: with the help of which the lease agreement ends up in in this example rent will be reflected in the amount of 906 units (15000 * 0.06375 / 0.9689 * 0.9779).

By changing the basic calculation formula, you can also change the payment schedule - increasing, decreasing or quarterly.

Calculation of leasing payments

Payments under a car leasing agreement are the final amount withdrawn after all calculations, which the client is obliged to pay to the company that provided him with such services.

The amount is determined not only after the cost of leasing the car has been calculated. But it is also assigned after such costs as depreciation expenses and so on are found.

In addition, the method of how the client will pay is always taken into account - in equal shares or not. Other nuances are also taken into account.

How to calculate

The lessee can repay the amount in any form, it all depends on how the parties agree on this issue.

There are three forms of leasing payments:

1. In cash.
2. Products or services.
3. Mixed.

Even though individuals are not entrepreneurs or a legal entity with a larger business, they can also count on using any of these payment models.

This can be practiced, for example, in the case where a citizen runs his own subsidiary plot. He can pay part of the cost of the car leased by the harvest.

Or if individual is ready to regularly provide passenger carrier services upon request of a leasing company. But most often, of course, the monetary form of payment is applicable in reality.

The client can make payments not only once a month. The schedule can be determined by the lessor and discussed with the client (lessee) and others.

For example, a consumer may pay weekly, on specific dates of the month, which are not necessarily always the same, or quarterly or even annually. But most often we find that payments to individuals are assigned monthly or on an individual schedule.

Payment calculations may also depend on their size and payment mechanism. So, the client can choose how to pay the leasing amount each time:

• in equal parts (annuity);
• amounts decreasing from payment to payment;
• increasing amounts.

The lease payment will always include the following charges:

1. The cost of a car being leased (taken into account in an agreement that involves the purchase of this property).
2. Depreciation issue. The payment is issued and calculated for the entire duration of the leasing agreement.
3. Compensation payments to the leasing company for the client’s use of the loan.
4. Commission remuneration.
5. Secondary (additional) expenses incurred by the lessor when registering the car.

Depreciation calculations are needed for the reason that leasing still contains such an aspect as the lease of purchased property, which is still owned by the leasing company.

Payments can also be different according to the method of their accrual to the lessee, which include:

1. Advance method. The case when, at the stage of concluding a contract, the client is ready to immediately pay an initial amount in the amount of 10 to 50% of the cost of the car.
2. Fixed amounts. Such amounts are always called annuity payments by creditor banks.

For some reason, this term is rarely encountered in leasing. These are equal payments that the client has to make to the lessor’s account once a month.

1. Minimum payment method. The total amount includes depreciation, payment of credit money that the lessor previously used when buying a car for a future client, commissions, payment support services And so on.

The initial amount will be deducted in further calculations and will not be included in subsequent payments. But this moment comes only after the fact, when the client pays the advance.

Additional expenses incurred by the lessor when purchasing a car may include: customs clearance, compulsory insurance motor vehicle liability (), voluntary and other costs.

Since the payment consists of several directions of computational operations, formulas are used for each of these calculations. Let's consider all the formulas that are used in the practice of determining payment amounts in a single table.

Formulas for finding the amounts of lease payments in chronological order:

Now, if you add all this up, you get an amount suitable for payment under the terms accepted by the parties to the agreement. The total amount that is derived and the addition of the found values ​​must be distributed according to the principle and payment mechanism established by the contract.

In equal parts once every month, which means the amount is divided by the number of months falling over the entire term of the contract, and so on.

Example of a payment procedure

Let's take the following as initial data:

The calculation will be carried out over three years - the period for which the leasing agreement concluded between the parties will be valid. In our conditions, this is 3 years. To do this, we need to consider three tables.

Payments for the first year of leasing:

Payments for the second and third years of leasing:

Rise in price

The increase in price includes the ratio of the amounts spent when the leasing company takes over the car, which is compared with original cost cars.

The increase in price is usually indicated as a percentage and shows the figure over a one-year period. This figure is a kind of addition to the basic cost of the property and is paid by the client - the lessee.

It is also called an analogue of the interest rate that banks usually set for a car loan. But in order to correctly calculate such a parameter, you need to use the classic standard formula:

Effective rate

The real cost of the leasing project, which includes all expenses that the lessee must bear in the process of leasing the use of the property, is the effective rate. Let's consider an approximate calculation of this parameter.

The following initial data are accepted:

After paying the first installment in the amount of 280 thousand rubles. the increase in price does not apply to the total amount, but minus the advance payment, which amounts to 2.52 million rubles. This is the real amount that you “borrowed” from the leasing company.

The formula for such calculations will look like this:

RATE (months of leasing; - the amount of the monthly payment (the minus sign in front of such an amount is required!); the total amount of debt).

Enter numerical values ​​into the Excel formula field as follows:

RATE(36, -100,000, 2,520,000).

The given result will be the effective rate, which in our example was 2.07% and 24.85% per year (2.07 * 12 months).

International

The use of currency calculations when determining the cost of international leasing is a normal and natural phenomenon.

This also takes into account customs duties, as well as indirect taxes, such as excise duty. For clarity, consider one example of such a calculation.

Conditions of the problem:

Since the car will subsequently be given legal ownership to the lessee, the client is obliged to cover the costs that were incurred by the leasing company when importing the car into the country.

Leasing offers a lot of benefits for Russian entrepreneurs. The effectiveness and relevance of this agreement lies in the fact that leasing interest can be significantly reduced compared to conventional loans. And the acquired property under the contract, in fact, becomes the subject of collateral, which guarantees the bank or leasing company a return on the invested funds.

How are leasing interest determined?

At its core, leasing is very similar to traditional system lending. A business entity is allocated a regular loan at a certain percentage, paid annually, which is included in lease payments.

The only difference is that a bank or leasing company issues a loan against a specific property. Moreover, the bank, as a rule, is indifferent to the relationship between the lessor and the lessee and the entire technical side of the agreement. He is interested in the leasing interest. And the success of the leasing transaction will depend on how much less they will be compared to conventional loans.

The bank provides the lessee with a loan at a fairly low interest rate. However, due to a number of features of the leasing agreement, the percentage of this loan will always be lower than usual, and Russian bankers manage to increase it to 10-12 percentage points per year. Taking out a loan at such a low interest rate, and without additional collateral, is the dream of any business entity.

Reasons for reducing leasing interest rates

The bank has the opportunity to reduce the interest rate for the following reasons:

• The purchased equipment contributes to the development of production, which gives the loan a deliberately targeted nature;
• The purchased property becomes an excellent analogue of traditional collateral, which allows the bank to guarantee the repayment of the loan;
• With a reasonable determination of the term of the leasing agreement, the bank can receive additional profit in addition to the interest on the loan, and such conditions may not be very burdensome for the enterprise.

However, in addition to calculating traditional annual interest for the use of property under a leasing agreement, Russian economists highlight the concept of “leasing rate,” the calculation of which is also of no small importance for determining the effectiveness and profitability of a leasing transaction.

Leasing rates

Defining the concept of “leasing rates” is not easy, since there are several of them. A number of economists understand it as a regular lending rate, which can be 10-12 percent or more per annum. From the point of view of this assessment, the leasing rate is analogous to the loan rate.

But there is another point of view. And the determination of the leasing rate is often linked to the rate of appreciation of property under the leasing transaction. Economists calculate this rate based on the difference between the actual value of the acquired property and the cost of the property under the leasing transaction. In essence, we are talking about the amount of overpayment for property when receiving a bank loan.

There is no unambiguous mechanism for calculating leasing rates. So, some experts include all payments (advances, deposits, as well as the initial loan payment) in the formula for calculating it, while others exclude these payments, as a result of which the rate of increase in the cost of the loan is significantly reduced. And a leasing transaction becomes much more profitable than obtaining a conventional loan.

Credit- this is an economic relationship that involves the transfer of material or other types of assets from their owner (creditor) to another person (borrower) on the terms of return within a certain time frame and payment of an appropriate percentage for use.

The loan can also be interest-free, but in this case the lender practices from the very beginning to inflate a certain value of the values ​​​​that are transferred on credit or, according to the terms of the agreement, the borrower is obliged to pay for insurance. It all depends on the terms of the contract and the type of values ​​(monetary, commodity or intangible values).

Leasing is a type of lending that implies long-term lease of fixed assets (premises, equipment, land, vehicles, etc.) with the subsequent provision of the right to purchase leased objects. This can also be called a type of entrepreneurial activity.

What is the difference between a loan and leasing?

Who becomes the owner of the purchased goods. Both an individual and a legal entity can apply for a loan, as well as leasing. But leasing is still preferred by private entrepreneurs and legal entities.

The owner of the purchased goods when applying for a loan immediately or after the first payment is the borrower (that is, material value becomes his property completely); When concluding a lease, the owner still remains for long periods - the lessor, and after a certain period of time (depending on the terms of the agreement) the ownership right can pass to the lessee of the fixed assets.

Banks also set higher requirements for their borrowers than leasing companies. Also one important feature loan and leasing is that taxes on the loan are paid by the borrower, and when concluding a leasing agreement, taxes are paid by the lessor.

Terms of loan and leasing

Loans are mainly short-term (from several months to 1 year) and long-term (from 1 year to 3 years, 10 years, 20, etc.). Depending on the loan object, loan size and conditions agreement.

Leasing- in most cases this is a long-term lease of fixed assets, with the possibility of further redemption.

Leasing can also be seasonal (for example, rent of land).

The timing of consideration of an application for a loan and leasing depends on many factors:

• lender and lessor (forms of their main activities);
• object of lending;
• terms of the contract;
• monthly payments (various repayment schemes apply);
• financial capabilities of the borrower and lessee.

Interest rates

Leasing interest rate– this is the interest that is accrued on the balance of the debt according to the real value of fixed assets.

This indicator most objectively shows the real cost of leasing and it does not depend on the advance payment and the repayment structure of the leasing loan.

When assessing the leasing interest rate, you must also take into account: insurance costs, various taxes, depreciation, etc. The fee for using the property will also depend on these factors.

To really estimate the leasing rate, you need to exclude additional costs from the calculations as much as possible, since they may initially be included in the total leasing price: vehicle tax, real estate tax, insurance payments, etc.

Leasing interest rate– this is the interest rate that is charged on the balance of the debt according to the price of the property.

The interest rate on leasing helps to most accurately navigate its value; it is not affected in any way by the amount of the advance payment, nor by the chosen scheme for repaying the cost of the property leased (leasing).

The loan rate will primarily depend on the loan amount, repayment period, and similar rates of competing credit institutions in the provision of credit services.

For example, bank credit programs vary greatly and depend on many factors (basic information on the provision of credit services for individuals and legal entities is displayed on bank websites).

How to calculate leasing correctly

To do this, you can use a special leasing calculator.

Just choose:

• leasing object - type of fixed assets;
• leasing term;
• the total cost of the loan object;
• indicate the proposed interest rate for lending by a financial institution;
• an initial fee;
• depreciation amount (%);
• one-time commission.

You can choose the interest calculation scheme: standard, annuity or accelerated depreciation.

As a result, we find out the indicators of interest for overpayment:

• total amount of payments (including interest);
• total cost of leased fixed assets;
• commission;
• the remaining cost of the rental property.

Various leasing companies and banks provide individual leasing conditions for their clients, so the percentage, commission, and payment amounts directly depend on many factors regarding the loan object.

Features of leasing for legal entities

For legal entities, credit institutions can provide more flexible and loyal leasing conditions and practice an individual approach to each client.

In addition, leasing companies very favorable conditions compared to the conditions of banks (but this is also very individual and depends on many indicators).

For legal entities in order to develop a business and purchase fixed assets, leasing is one of the most favorable lending conditions and has many advantages compared to obtaining a loan:

• lower lending percentage;
• flexible terms;
• rent for favorable conditions with further right of redemption;
• various external factors are not taken into account (where the company is registered, no collateral is required, etc.);
• savings when paying taxes.

Everyone can independently choose both a loan and leasing.

You just need to calculate everything very well (loan amount, repayment terms, interest, etc.), taking into account individual characteristics, stages of business operation, possible investments and the payback of lending in general.