Generally used to buy equipment. Three parties need to participate: equipment users, equipment sellers and financial lessors. The equipment user puts forward the equipment demand and purchase target, and the financial leasing party buys the equipment from the equipment seller and then gives it to the user for use. The equipment user agrees to return the equipment principal and agreed interest to the financial leasing party.
The Administrative Measures for Financial Leasing Companies issued by CBRC in 2007 shows that there are essential differences between financial leasing companies and financial leasing companies. Financial leasing companies are supervised by the CBRC, and financial leasing companies are supervised by the Ministry of Commerce.
Extended data:
FinancialLeasing, also known as equipment leasing or modern leasing, refers to leasing that substantially transfers all or most of the risks and rewards related to asset ownership. The ownership of assets may or may not be transferred eventually.
Financial Leasing The financial leasing business carried out by enterprises with foreign investment and foreign enterprises approved by the insurance regulatory commission of the Bank of China and the competent foreign trade department.
An essential difference between financial leasing and traditional leasing is that traditional leasing calculates the rent based on the time when the lessee leases the property, while financial leasing calculates the rent based on the time when the lessee occupies the financing cost.
It is a highly adaptable financing method when the market economy develops to a certain stage. It is a new way of trading in the United States in the 1950s. Because it adapted to the requirements of modern economic development, it developed rapidly around the world in the 1960s and 1970s. Nowadays, it has become one of the main financing methods for enterprises to update equipment, and is known as "sunrise industry".
This business model has developed rapidly for more than 20 years since it was introduced to China in the early 1980s. However, compared with developed countries, the advantages of leasing are far from being brought into play, and the market potential is great.
References:
Baidu encyclopedia-finance leasing company