Why is financial leasing debt financing and indirect financing?

Financial leasing is the most common and basic form of non-bank finance in the world. 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 invests to purchase the equipment selected by the lessee from the supplier. 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. Financial leasing needs the platform of leasing company, so it is indirect financing.

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Reply time: 2021-12-16. Please refer to the latest business changes announced by Ping An Bank in official website.