No Marshmallows, Just Term Papers
On the Existing Situations and Problems of Financial Leasing Business in China and Suggestions for Its Development
Financial leasing, which can be called equipment leasing or modern leasing was a new trade form. It has become one of the main financing means for companies to renew the equipment. The main function of financing leasing is financing and promotion. According to the demand of goods from the leaser, the lesser buys the goods from the goods supplier and lends it to the leaser and the leaser pay the rent. Financial leasing is mainly including four types, they are direct leasing, lever leasing, leaseback leasing and reletting leasing. Now our country is mainly use the direct leasing form.
As a new financing form, the financial leasing has some advantages as follow: Firstly, it is a special financing form. It is different from other four financing forms such as bank loan, shares financing, bond financing and oversea financing. The company only needs equipment to produce, so they don’t need to raise money. Secondly, it helps to accelerate technical reform and get the latest technology, make the company to be in front. In addition, it can avoid the affection of the inflation and keep away from the interest rates risk. Finally, it is very convenient and efficient.
From April 1981 to now, the first China and foreign joint venture leasing company——China East International Leasing Company which was established in Beijing had gone through nearly thirty years. In the recent thirty years, there are sixteen companies were established by China and foreign joint venture leasing company, and forty companies were established by domestic leasing company which were examined and administered by foreign trade department. At the beginning period of the development, for the law is distempered, the develop step of financial leasing business was very slow, but with a series of law which was promulgated, the financial leasing business of China had...
Join now to view this essay and thousands of others on PaperCamp.com. It's free Join Now!