Specifically, it has to be ruled in conjunction with the credit rating of the project, the financing period, the scale of the occupied capital, the repayment method, the number of repayment periods, and the amortization period of the specific equipment (assets) of the financial leasing, and so on. In addition, the specific cost of financial leasing is also related to whether the need for security, whether indirect financing or direct financing and other effects.
Under normal circumstances, a larger scale of financing, a higher credit rating of the project party, a longer amortizable life of the assets financed, and a smaller number of repayment periods will result in a relatively lower cost, and vice versa.
It is worth mentioning that in the case of state-owned enterprises, the cost of some financial leasing projects is even less than 3% due to the endorsement of the government's creditworthiness, so it is necessary to be project-specific regarding the interest rate of financial leasing loans.