Duration: 1 day

Instructor: Fatih KURAN

Objective

As a modern financial technique, operating leasing is evaluated from the Lessee's perspective in this program. Why does operating leasing see such high demand worldwide? What are the unique benefits it can provide to your company that no other financing alternative can? What types of companies and situations are especially suitable for operating leasing?

This program answers these questions and more, including:

• The additional benefits and services operating leasing provides beyond financing.

• VAT impact, tax advantages, different leasing applications, options, and important contract considerations.

• How operating leasing compares to other investment financing techniques and its impact on financial statements and ratios.

• Comparisons of leasing alternatives, including machinery, equipment, and vehicle types suitable for leasing.

• How leasing compares to purchasing with bank loans and equity.

By attending this program, participants will gain knowledge on how to address these questions, understand critical considerations in operating leasing, and make informed decisions during transactions.

Content

1. Overview of the Leasing Sector

• Daily Leasing

• Operating Leasing

• Financial Leasing

2. What is Operating Leasing?

• Full Definition

• Development Process

• Key Criteria Differentiating It from Financial Leasing

3. Accounting for Operating and Financial Leasing

4. Unique Benefits of Operating Leasing for Lessees

5. Operating Leasing for Cost Reduction and Control

6. Advantages of Financial Leasing for Lessees

7. When and for What Investments Should Operating Leasing Be Preferred?

8. Profitability of Operating Leasing for Lessors

• Importance of Economies of Scale and Specialization

• Procurement

• Maintenance, Repairs, and Other Services

• Residual Value

• Can the Lessee replicate the Advantages of the Lessor?

9. Key Factors in Evaluating Leasing Alternatives

• Lease Payment

• Mileage-Limited Leasing Transactions

• Full-Service Content

• Replacement Vehicles

• Service Process

• Insurance and Coverage

• Different Applications and Services

• Options

• Short-Term Leasing Applications

• Leasing with Operators

• Usage Conditions

• Delivery Conditions

• Exemptions

• Mileage Overruns

10. VAT and Its Impact on Investment Decisions

• VAT in Purchases (Equity and Bank Loans)

• VAT in Leasing Transactions (Operating and Financial Leasing)

11. Calculation of Lease Payments (Excel-based)

12. Case Study: Comparison of Leasing, Cash Purchase, and Bank Loans (Excel-based)

• Concept of Net Present Value (NPV)

• Concept of Cost of Capital

• Preparing Cash Flows for Different Alternatives

• Comparison of Alternatives Using Discounted Cash Flow Method

• Lowest NPV: Why and When?

* The course involves Excel applications, and participants are required to bring laptops with Excel 2013 or a higher version installed.