What is a financial leasing company? How does it work?

Q: Zhang Zhenyu: Financial leasing companies specialize in leasing business, and they regularly collect rents from lessees by providing leased equipment. The business process of financial leasing companies is as follows: according to the requirements of enterprises, leasing companies raise funds to provide equipment leasing in the form of "melting things" rather than "financing"; During the lease term, the enterprise as the lessee only has the right to use the leased property, but has no ownership, and should pay rent to the leasing company regularly according to the provisions of the lease contract. Upon the expiration of the lease term, the lessee pays a small amount of symbolic loan price (i.e. the symbolic residual value of the leased property) to the leasing company, and both parties can handle the property transfer procedures of the leased property. Different from the loan business of banks, banks lend money to enterprises, which use it to buy equipment, paying interest first and then repaying the principal. Financial leasing companies purchase equipment first, and then lease the equipment to enterprises. The enterprise pays the lease fee regularly, and the sum of the lease fee is equivalent to the principal plus interest of the loan. The advantage of leasing is that the ownership of the equipment belongs to the financial leasing company before the enterprise pays off all the leasing expenses, so the risk is relatively low.