Leaseback

The Lessee (customer) sells an asset to the Lessor (JIC Leasing) at a fair market value and then leases it back. During the lease, the Lessor is the legal owner of the asset, while risks and rewards incidental to the ownership of the leased asset are transferred to the Lessee in addition to the operating control over the asset. The term of a leaseback is generally 3 to 5 years.

An asset for lease under a leaseback agreement refers to the instrument, equipment, vehicle or infrastructure facility that the Lessee has sold to the Lessor for a leaseback.

1.Existing assets are reinvigorated and utilized with improvement of cash-flow.

2.Easy and fast access to mid- and long-term finance.

3.The financing ratio is generally higher than that of mortgage loans.

4.Flexible arrangements for lease term and rental payment.

5.Accelerated depreciation.

6.The lessee’s actual use right and ultimate ownership of the existing equipment is not affected.