The biggest difference between P2L and P2P is that in the whole financing process, there is a financial leasing company as an intermediary. As we all know, P2P, such as OK loan, invests the funds of individual investors in individuals or corporate borrowers, and matches the private lending demand with the private idle funds. P2L, on the other hand, invests the funds of individual investors in the leasing projects of financial leasing companies.
What is financial leasing? The main body of financial leasing business includes lessor and lessee. The lessor rents a specific asset to the lessee by charging a certain rent, and the lessee obtains the right to use the asset within the prescribed time limit and pays the rent. When the financial lease contract expires, according to the contract, the ownership of the underlying assets is transferred to the lessee or still belongs to the lessor.
In P2L mode, the investment income is shared by investors and financial leasing companies, so its yield is slightly lower than that in P2P mode.