Finance Lease/Installment Sales

Installment Sales

Features

  1. We purchase a property on behalf of a customer and sell it to the customer in long-term installments.
  2. Flexibly set a payment period.
  3. The customer must capitalize on it (on-balance).
  4. The customer must perform administrative work associated with ownership of equipment (depreciation calculation and fixed asset tax payment).
  5. Similar to a lease transaction, we offer movable comprehensive insurance on the targeted property in principle.
  6. When payment of the installment sales proceeds is complete, ownership of the property is transferred to the customer (ownership of the property is reserved by the lease company until completion of the payment of the installment sales proceeds).

Mechanism of Installment Sales

Diagram of JA Mitsui Leasing's installment sales scheme. The customer enters into an installment sales contract with JA Mitsui Leasing and pays fixed asset tax to the local government. The manufacturer/dealer delivers equipment to the customer and concludes a sales contract with JA Mitsui Leasing. JA Mitsui Leasing maintains an insurance contract with the insurance company and pays insurance premiums.

Comparison of Lease Contract and Installment Sales Contract

Comparison of Lease Contract and Installment Sales Contract
Lease Installment
Type of contract Lease contract Buy and sell agreement
Targeted equipment Movable property Movable property
Ownership of equipment Lease company Customer (after release of reservation of ownership)
Responsibility for equipment management Customer Customer
Cancellation of contract midway through Impossible in principle Prohibited
Expiration of contract period Return or renew lease Transfer of ownership

Advantages

  1. POINT

    Reduction of financial burden at introduction of equipment

    Because not a lot of capital is required when introducing equipment, the customer can remain economically affluent. In addition, the financing effect is 100%.

  2. POINT

    Effective operation of your funds (diversification of financial arrangements)

    Because a lot of financial outflow can be prevented, it is possible to use your own funds and debts from other capital investments as operating capital.

  3. POINT

    Leveling of financial burden

    Because the monthly installment amount is fixed, it is possible to level your financial burden.

  4. POINT

    Flexible payment period setting

    Because it is possible to set a payment period according to your budget, flexible installation of equipment is available.

  5. POINT

    Transfer of property ownership

    When payment of the installment sales proceeds is complete, ownership of the property is transferred to the customer (ownership of the property is reserved by the lease company until completion of the payment of the installment sales proceeds).

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