Duration: 2–3 days

Instructor: Fatih KURAN

Objective

In a survey conducted in the U.S., 52% of lessees stated that leasing was preferred due to cash flow-related reasons. The goal of every lessor is to create the most suitable cash flow options for the Lessee while aligning with the company's profitability and risk objectives. The "Creative Pricing and Sales" program aims to help participants better analyze lessee needs and demands, enabling them to design the most appropriate lease plan tailored to the Lessee.

Who Should Attend

• Professionals working in leasing pricing, sales, and marketing

Purpose

• Analyze lessee demands and needs

• Answer the question: "Why Leasing?"

• Explain the advantages of leasing and why it is preferred as an investment financing technique.

• Understand differences among investment types and machinery/equipment risks.

• Examine competition and compare alternative investment financing options

• Introduce methods of product development with creative financial alternatives in leasing

Content

1. Investment Types

• Capacity Expansion

• Technological Renewal

• Bottleneck Elimination

• Comprehensive New Investments

• Non-Operational New Investments

• Project Finance

2. Competition

• Leasing Companies

• Banks

• Country Loans (e.g., Hermes, Coface, U.S. Exim)

• Forfaiting

• Equity

3. Why Leasing?

• Cash Flow

• Net Present Value (NPV)

• Tax Advantages

• Technological Renewal

• Maintenance, Options, and Costs

• Convenience, Suitability, and Flexibility

4. Cash Flow Components

• Down Payment

• Lease Payment

• Term

• Grace Period

• Structured Lease Plans (Step-Up/Step-Down)

• Balloon Payments

• Interim Lease Payment Plans

• Seasonal Lease Plans

• Vendor-Credit Transactions

5. Lease Payment Reduction Techniques

• Deposit

• Deferred Payments

• Discounted Purchases (Blind Discount)

• Transfer of Ownership Costs

• Balloon Payments

• Interim Payments

• Structuring Lease Plans (Step-Down Transactions)

6. Lessee NPV Reduction Techniques

7. Differentiation Techniques and Applications

• Fixing Investment Costs

• Currency Fixing

• Parity Fixing

• Currency Basket Financing Approach

8. Advantages of Operating Leasing for Lessees

9. Operating Leasing for Cost Reduction and Control

10. Lessee Profiles Suitable for the Product

• Project-Based Companies

• Technology

• Cash Flow Management

• Outsourcing and Full Service

• Off-Balance Sheet Borrowing

• Tax Management

11. Structuring Off-Balance Sheet Financing

• Deposit

• Residual Value Insurance

• Special Discounted Transactions

• Deferred Payment Option

• Early Termination Option

• Structuring Based on Lessee and Lessor Interest Rates

12. Reflecting Tax Advantages of Operating Leasing in Pricing

13. Options and Their Pricing

• Mid-Term Purchase

• Mid-Term Renewal

• Early Termination Option

• End-of-Term Purchase

• End-of-Term Renewal

14. Operating Leasing Products and Their Pricing

• Technological Renewal

• TRAC Leasing

• Leveraged Leasing

• First Amendment Leasing

• Seasonal Lease Plans (Multi-Lessee Transactions)

15. Comparisons

• Financial Leasing vs. Bank Loans

• Financial Leasing vs. Equity

• Operating Leasing vs. Bank Loans