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This system enables NTT FINANCE to purchase facilities
and equipment in the customer's stead, so they can then be leased to the customer.
With just a fixed monthly lease payment, this customer is able to avoid administrative
processes including amortization, fixed asset taxes and insurance payments. |
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Use a small monthly lease payment to get the equipment
you need without having to make a large purchase at once. As a result, remaining
funds can be used effectively for operation or other costs. |
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Under tax law, monthly lease payments can be listed as a loss to the company by applying the straight-line amortization method across the term of lease. |
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With a lease, you can set terms that are shorter than
the item's legal durable years, preventing the maintenance of aging equipment.
Leases are therefore effective when it comes to equipment and facilities when
technology changes rapidly.
It's also possible to update to newer equipment over the course of the lease. |
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NTT FINANCE is the owner of the object you lease.
As such, the tangled administrative tasks that fall to the owner are borne not by the customer but by NTT FINANCE.
Also, because, starting in 2007, there is a difference in book value under corporate tax laws and the standard amount subject to fixed asset taxes, purchasing instead of leasing means those items require double the administration work.
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The lease payment made every month does not change, making it easier to understand your costs. This makes it easier to develop facilities investment and funding plans for your business.
Furthermore, SMEs with short-term or small-amount leases can continue to list lease payments as leases rather than purchases.
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Leases have the same effect as long-term funds provisioning.
As a lease is not a loan, however, any loan capacity you have established with
a bank remains untouched. |
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Once a lease is completed, you can re-lease any item
you wish to continue using at a lower rate (with an annual payment that is roughly
1/10 that of the ordinary lease annual amount). |
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Any wastes resulting from your business must be appropriately dealt
with under your responsibility to conform to the Industrial Waste Disposal Act.
Illegal dumping results in the assessment of fines.
With leased items, however, NTT FINANCE is responsible for their disposal, voiding
any administrative tasks for your company. |
| NTT FINANCE purchases the equipment or facilities the customer
desires from the manufacturer or vendor. NTT FINANCE then enters into a contract
to loan that equipment or facilities to the customer over a long term. |
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After meeting with a dealer (vendor) to negotiate for the item
the customer desires, the customer then contacts NTT FINANCE. |
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After calculating lease fees based on the estimate the dealer (vendor)
provides, NTT FINANCE prepares a proposal. |
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The customer submits a corporate history and financial
statements (for at least three immediately prior terms). |
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After reviewing the submitted materials, NTT FINANCE
then contacts the customer. |
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An estimate is prepared for the proposed lease. |
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The customer reviews the details of the contract, and then signs
it. |
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NTT FINANCE enters into a sales contract with the dealer
(vendor) and orders the item to be leased. |
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The item to be leased is delivered directly from the
dealer (vendor) to a location specified by the customer. |
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After inspecting the item to be leased for acceptance,
and issuing a document of receipt, lease payments begin. |
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NTT FINANCE pays the dealer (vendor) for the item directly. |
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Once the lease is completed, it can be terminated or
continued (re-leased) at the customer's choosing. For re-leasing, the annual amount
is reduced to 1/10 that of the original lease. If the customer chooses to terminate
the lease, the customer is responsible for returning the item to a location specified
by NTT FINANCE, with the costs involved borne by the customer. |
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