1 、Comparison between the lease and the purchase

The lease can make you use the up-to-date technology in a timely manner, but will not be locked in an equipment that will possibly be outdated very soon. The lease provides your IT procurement with the flexible, effective and money-saving financing tool. Then, compared with the one-off purchase, what are the advantages of the lease? Selecting the Orientation lease, you can:

2 、Lease option

Technology use lease

The technology use lease – or referred to as “to lease for use”, is applicable for the enterprise that is expected to be able to achieve the quick growth and the technical demands often have the updating changes. This option enables you to not need to own the related assets, therefore after the lease period you do not need to keep the outdated equipment. The surplus value is built in the lease, and the payment of the rent is based on our assessment for the estimated surplus value when the lease finishes. You only need to follow the use of the equipment to pay. In fact, this provide the guaranteed buyback, thus to prevent from the risk of the loss in the account surface caused due to the IT assets that are overrated you will meet in the future. Orientation Global Financing Group owns the equipments and the risks brought thereafter. When the lease finishes, you can confirm whether the equipment still complies with the commercial demands, to make the following choices:

• Return the equipment, and no need to further pay the rent
• Return the equipment, and update so as to upgrade the equipment
• Extend the lease period for 12 or 24 months

The customer purchases the equipment at the fair market price

Financing lease

The financing lease – or referred to as the “lease for the proprietary”, and there is no surplus value in this lease, therefore during the lease period, all the expenses for the assets should be paid, and the rent payable does not need to be paid any more, and the proprietary of this lease asset can be acquired at the very low name price as well.

Sales and leaseback

The sales and the leaseback – Under this agreement, the equipment you have purchased can be converted into cash. This means that Orientation Global Financing Group will purchase the equipment you have installed at the asset value deducting the depreciation or the fair market price, and lease it back to you, thus enabling you to release the working capital for your enterprise.

Modification during the lease period

he modification within the lease period – Within the lease period, the usual advantages in the lease are still applicable for your decision making. Your enterprise can reserve the cash to be spent in other prior investment projects, meanwhile you can obtain the up-to-date Orientation technologies through the lease, and the competitiveness brought to you by these technologies. You can spend it in most of the IT investments: add or upgrade the server, expand the capacity of the storage, improve the printer and install the new software. Furthermore, you will be provided with other options. You can finance for the upgrading of the leased equipment, to meet the new requirements and include them into your original lease. Meanwhile, you can select to extend the lease period based on the original lease, so as to match with the longer life of your equipment. Therefore the lease fee you pay periodically can still maintain almost the same.

3 、Business flow and main clauses

Business flow in the Orientation lease

Before entering the lease contract

(A) The business negotiation (the supplier and the final customer determines the type, the configuration, the quantity and the service for the equipment, etc, and Orientation Lease Company will not participate. The supplier and the final customer enter the sales contract.)

(B) The final customer should provide the photocopies of the financial statements and the business license in the recent two years, and after the credit assessment (2 to 10 working days), the lease company will have the negotiation with the final customer for the price and the contract, then enter the contract.

• The lease contract has one form with two counterparts, signed by the lease company and the final customer.
• The three-party transfer agreement (of the sales contract) has one form with three counterparts, signed by the three parties of the lease company, the final customer and the supplier (Only the right for the purchase and the obligations for the payment under the clauses in the sales contract can be transferred, and other rights and obligations will not be transferred).
• The supplier will deliver the goods to the final customer (if the lease goods is the duty-free equipment, the final customer should settle the custom-clearance procedures by itself), and the final customer signes the certificate of the acceptance to Orientation Lease Company, attached with the equipment list (including the serial number of the equipment), and at this moment, the final customer should remit the rent in Phase 1 to the lease company, and the lease starts. Within 10 working days after receiving the bills and/or the amount tickled below, Orientation Lease Company should pay the amount to the supplier in once:
• The notice for payment issued by the supplier,
• The certificate of acceptance issued by the final customer,
• The official invoice in the full amount issued by the supplier (the invoice for the value-added tax),
• The lease company receives the first installment of the rent from the final customer.
• When the lease finishes, the final customer is entitled to decide whether to purchase, or renew the lease, or return the leased equipment.

Main conditions in the Orientation lease contract

Selection, acceptance and installation of the equipment: the lessee is responsible for the selection, the acceptance and the installation of the leased equipment.

Import of the equipment: the lessee provides the approval documents for the import, and the lessor is responsible to settle the procedures for the import. If it is the duty-free equipment, the lessee should settle the procedures for the custom declaration and the custom clearance.

Equipment maintenance: During the lease period, the lessee is responsible for the maintenance of the equipment, to maintain the equipment in the good and normal working status recognized by the equipment manufacturer, and bears all the related expenses. The lease price does not contain the maintenance expense (Except that there is the other agreement).

When the lease contract ends: after the lessee fulfills all the obligations for the payment, when the lease period is expired, the lessee is entitled to purchase back this equipment at the fair market price or the price agreed in advance.

Tax, duty and other expenses: the lessee should be responsible for all the duties, value-added taxes, other expenses and all the taxes and expenses relating to this transaction charged by the government or the agency institutions, where including the transportation, the insurance and the agent fee for the import not listed into the lease cost. If the lessor pays off the foresaid taxes, the lessee should reimburse them to the lessor in a timely manner (Except that there is the other agreement).