What does a financial leasing company do?

Financial leasing, also called financial leasing, is a kind of financial business and is generally used for equipment purchase. 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 financing lessor buys 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.

Financial leasing, also known as equipment leasing or modern leasing, refers to leasing that essentially 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 companies are non-bank financial institutions approved by the central bank and mainly engaged in financial leasing business.

Under the current management system in China, financial leasing companies, as the purchasing, investment and management institutions of leased assets, can be financial institutions or non-financial institutions.

Financial leasing companies should be positioned as asset management institutions serving finance, trade and industry. It is a service with more technical services in service trade. Therefore, the leasing company is neither a bank nor a loan company, nor an investment company, but a knowledge service technology company.

Financial leasing is a new financial industry integrating financing and financial services, trade and technological innovation. Because of the combination of financing and finance, the leasing company can recycle and dispose of the leased property when there are problems, so the requirements for corporate credit and guarantee are not high when handling financing, which is very suitable for financing of small and medium-sized enterprises.