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Financial Leasing Business Introduction

Financial leasing means that the lessor signs a supply agreement with the third party (supplier) at the request of the lessee (user), under which the lessor purchases the equipment selected by the lessee. At the same time, the lessor signs a leasing contract with the lessee and leases the equipment to the lessee and charges rent.

Financial leasing embodies a new financial concept. In the past, no matter credit or corporate bond, both reflected the “corporate credit”.  While unlike traditional financial concept, financial leasing no longer just focuses on corporate credit, rather it utilizes some assets of an enterprise to generate “asset credit”. Such practices not only brings more off-balance-sheet investment and financing opportunities for the companies, but also further enriches financial service system, enabling some firms, especially the new ones or small and medium-sized companies, whose credit standings cannot be easily identified in a period of time to access financing services and obtain development opportunities.