Leasing policy under technological advances-Risk analysis for lease charge determination

Under the situation of furious competition among leasing companies, the important problem for a leasing company’s management is to determine the lease charge on each lease contract suitably from the management viewpoint. A lease charge is considered to be suitable when the leasing company can get an appropriate profit through the contract. But quite a lot of leasing companies adopt a full payout method for lease charge determination. It may not be a desirable method in the above mentioned situation because a comparative high lease charge decreases its competitive power. So, it is important for a leasing company to determine suitable lease charges which satisfy both the leasing company’s need and its client requirements. This paper proposes a lease charge determination method for a leasing company based on risk analysis. The method which the authors propose in this paper has two eminent characteristics. One of them is that the risk can be treated probabilistically. The other is that the concept of two profit levels (‘necessary profit level’ as minimum necessary profit and ‘sufficient profit level’ as maximum obtainable profit) is introduced as the lease charge determination criterion. The advantages of this method are as follows: (1) the lease charge which satisfies given risk conditions can be determined by using the disposal price distribution of the lease object, (2) the suitable lease charge can be given in the form of ‘a certain range’ which makes the lease charge negotiation with its client flexible. In this paper, firstly, the authors explain the lease charge determination method, secondly, they give the lease charge determination procedures, thirdly, the authors discuss some characteristics of this method and finally, they show numerical examples. [In Japanese.]