I am a risk control officer for a foreign-funded financial leasing company. Let me answer your questions.
You asked why there is still a market for financial leasing? The implication is that it is very common to buy equipment and pay in installments? This is not actually the case. First of all, financial leasing targets small and medium-sized enterprises, even small and micro enterprises. The loan requirements provided by banks to these enterprises are very strict and the amounts are very small. In the market, banks generally require real estate mortgage as a prerequisite, and it must comply with the national policy industry. For the equipment installment mortgage part, the amount granted by the bank is generally 20 to 30% of the value of the equipment. In comparison, financial leasing can give you around 70, which can be said to be a very important advantage for small and medium-sized enterprises. Because the financing channels for small and medium-sized enterprises in the market are very limited, most enterprises can hardly afford to purchase equipment and increase working capital with capital alone. This has restricted the development of enterprises to a great extent. It can be said that financial leasing has helped many small and medium-sized enterprises with development potential and short-term funds to achieve a win-win situation.