Financial leasing is the most common and basic non-bank financial form in the world at present. It means that the lessor enters into a supply contract with a third party (supplier) at the request of the lessee (user), and according to this contract, the lessor contributes to the purchase of the equipment selected by the lessee. At the same time, the lessor enters into a lease contract with the lessee, leases the equipment to the lessee, and collects a certain rent from the lessee.
In addition to the characteristics of flexible financing methods, financial leasing also has the characteristics of long financing period, flexible repayment methods and low pressure.
The term of funds enjoyed by small and medium-sized enterprises through financial leasing can reach 3 years, which is much longer than the term of general bank loans.
In terms of repayment, SMEs can choose to repay by installments according to their own conditions, which greatly reduces the short-term financial pressure and prevents the fragile capital chain of SMEs from breaking.
Although financial leasing is very suitable for SMEs to solve their own financing problems because of its low threshold and flexible form, it is not suitable for all SMEs.
Financial leasing is more suitable for small and medium-sized enterprises. Especially those small and medium-sized enterprises with good sales channels and broad market prospects, but have temporary difficulties or need to buy equipment in time to expand production scale.