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Training Course Summary:

This seminar covers all of the fundamental issues regarding leasing and considers its merits and drawbacks when compared to other types of financing. It includes many topical issues in leasing such as the management of residual value risk, the structuring of the lease and the security package, tax leases, lease pricing and further leasing issues.

Training Course Overview/Content:

Ownership and Different Types of Leases
Leases and loans
Products offered by lessors
Operating and finance leases
Conditional sales agreements
Leveraged leases
Advanced lease products

Managing Residual Value Risk
Finance leases vs. loans measurements
Yields, lease rates
Calculating lease returns
Assessing residual value

Structuring and Security Package
Transaction terminology
Critical lease documentation
Disclosures required when leasing real estate
Differences between types of lease and nature of security

Protecting the Value of Security
Areas of Mutual Interest (AMI) Provisions
Alienation, repairing responsibilities and remedies
Depreciation issues
Liquidation and bankruptcy

Structuring Tax Leases
Advantages of tax leases
Sale and leasebacks
The role of professional advice
Tax status of synthetic leases

Lease Credit Appraisal including Credit Scoring
Principles of credit appraisal
Role of credit and credit package
Cashflow, asset and performance appraisal compared
Large-scale leasing and credit scoring

Lease Pricing
Pricing finance and operating leases compared
Worked examples of lease pricing
Cost of capital and yield targeting
Typical lease profit margins

Further Leasing Issues
Asset Management and Problem Leases
Lease Accounting & Taxation Accounting Advantages of Leasing
Vendor Leasing Programmes