Advanced Lease Finance

Course overview: The course provides a unique opportunity to develop the skills and knowledge necessary to compete successfully in today's competitive leasing market. It aims to provide the participants with a comprehensive and thorough overview of some of the key areas of leasing as a method of finance. How this course will help you The course will: Review the Time Value Money concept Examine pricing theories and put them into practice Understand lessor and lessee accounting Discuss taxation developments Evaluate the credit process Assess risk and asset management Who should attend: This course is designed to follow on from our highly popular "Fundamentals of Leasing" course, however anybody with some experience in the leasing industry can attend this course. Leasing executives/managers Risk managers Asset managers Sales personnel Financial managers Business development managers Equipment vendors Bankers involved in leasing Lessors Lessees Those involved in advising within the leasing industry
Day 1 Pricing and structuring Module 1: introduction Workshop objectives Leasing framework Products Lessor objectives Module 2: financial mathematics Comparing proposals Interest rates – flat, nominal, effective Time value of money – time lines and analysing cash flows Time lines and understanding cash flows Exercises on TVM Multiple cash flows Net present value and internal rate of return Exercises on structuring leases with DCF Module 3: lease pricing Risks and lease evaluation Pricing with competition, required return and competition Risk analysis – sources of risk Cash flows and tax computation Module 4: pricing practical Case study to examine lease proposals Calculation of pricing Structuring for credit, asset management (Using calculators or computer models) Day 2 Accounting and client evaluation Module 5: lessor and lessee accounting Lessee lease accounting Operating lease accounting Lease classification within UK and US GAAP IAS 17 and IFRS Key differences between standards Problems areas Excercise: lease classification case Module 6: taxation of leases Terminology and framework Tax computations Tax treatment for lessors Income recognition methods Taxation of lessees Recent developments Module 7: lessee evaluation Equipment acquisition process Presenting the case for leasing Cash flows for lease and purchase Net present value for leasing and purchase Sensitivity analysis and the effect of changing variables Excercise: lease factors Module 8: accounting and evaluation Case Study to include lease accounting, classification, lease versus purchase and presentation of client benefits. Participants to work in teams and present their findings Day 3 Documentation, risk, and management issues Module 9: documentation Required lease documentation Facility and offer letters Equipment acquisition documents Lease agreement and key clauses Security and other documents Module 10: asset management Identification of asset management risks Types of equipment Asset management process and equipment scoring Settlement and exposure analysis Exercise on exposure analysis Module 11: lease management Problem cases Portfolio issues Fraud Recognising problem cases Exercise: lease management case Module 12: complete case study Case study to include pricing, structuring, documentation, asset management and other issues Module 13: conclusion