The Research On Finance Lease Rental Calculation Of Zoomlion

Compared with foreign financial leasing business, China’s financial leasingbusiness started late and had a slow development. With the economic globalizationand intensified market competition, more and more companies began to develop andimprove the financial leasing business. Because finance lease is simple inprocedure,flexible in lease contract, cost-saving, and can be accounted separately, aswell as improve the asset and liability structure of the lessee, many equipmentdemanding customers have abandoned credit methods such as installment and loans tochoose finance lease. Facing the increasing demand for finance lease and promotionalequipment, many domestic machinery and equipment manufacturers throughcooperation with the finance leasing companies or set up their own financial leasingcompanies, to achieve the purpose of occuping the market and expanding sales.The point of the financial leasing business is the calculations of rent. Thecalculation of rent plays an important role in the financial leasing contract, whichaffects the allocation of finance lease interests of both sides.We always turn to theway we calculate rent, when dealing with the rights and obligations of the two pratieof the contract. The choices of elements and methods in calculating the rent havegreat influences on the cash flow, financial status and related risks.Zoomlion is taken as an example for study, then the adaptability of the rentcalculation programs on the current situation of enterprises is analysed in this paper,and the author tries to design a rent calculation program which is more suitable for thecurrent situation of the company. This paper is based on the analysis of the currentstatus of finance leasing business and rental estimates from Zoomlion, it shows thatrecover risks and financial risks still exist in current financial leasing business. Over asingle method of calculation and quantitative impact factor settings are not sufficientto meet the company and resolve the current financial problems in rent calculationprogram. On the point of view of the lessores, this paper combines with the actualsituation of the company and related theories, and tries to design a program whichboth can guarantee the company more rental income and reduce the risks. Someconclusions can be made from the discussions and calculations：For the purpose tocontrol risk reasonably, adjust the financial position and achieve the maximal benefitsof the group,the company should take several measures such as improving bid bondand Advance payment ratio, strengthening credit risk monitoring and coordinating of the interests of the parent and subsidiary companies, as well as diversifying rentpayment methods and so on. Eventually two kinds of rent calculation programs,established post-paid level payment method and post-paid equal repayment ofprincipal, are selected to meet the current situation of the company.