Leasing

MCA Financial Corporation engages in two principal types of leasing: (a) direct financial leasing, in which we purchase equipment directly from approved suppliers, and then lease the equipment to the lessees; and (b) purchase-and-lease-back arrangements, in which we purchase and take ownership of the lease asset (typically manufacturing equipment, but also other tangible assets including factory buildings) from the client, and then lease the asset back to the client and charge rent. Upon the expiration of the lease, the client pays a nominal fee to acquire the title and ownership of the lease asset.

TYPICAL LEASING TERMS INCLUDE

• Leasing Target: Equipment, or some other tangible assets including factory buildings
• Typical Term: 3 – 5 years
• Leasing Rate: 10 – 30% over the current benchmark lending rate of PBOC
• Deposit: Based upon the client’s qualifications
• Transaction Fee: Based upon the client’s qualifications
• Advisory Fee: Based upon the services provided to clients
• Payment Term: Lease quarterly or semi-annually