1 thought on “What does financial leasing mean?”

  1. Financial leasing refers to the lessee to buy leased objects from the supplier according to the specific requirements of the leased objects and the choice of the supplier, and the lease will be used to use it in installments. During the lease period, the ownership of the leased object is owned by the lessor, and the lessee has the right to use the leased object.
    The financing lease is a cross -domain and cross -sector cross -sector that integrates finance, trade, and services. Vigorously promote the development of financial leasing, which is conducive to changing economic development methods and promoting the integration and development of the second and third industries.
    The role in accelerating the circulation of commodities, expanding domestic demand, promoting technological renewal, alleviating difficulties of corporate financing, and improving the efficiency of resource allocation. Actively developing the financial leasing industry is an inevitable choice for my country's modern economy.
    The role and status of financial leasing in my country's economic development will become more and more important in the next five years, and the weight of the financial leasing industry in the Chinese economy will become increasing. With the sustainable development of the Chinese economy and relying on the more powerful Chinese real economy, the financial leasing industry will become the mainstream format in my country's service industry in the future.
    The expansion information
    The modern financial leasing was born in the United States after World War II. After World War II, the U.S. industrialized production had surplus. In order to promote their own production equipment, manufacturers began to provide users with financial services, that is, selling their own equipment by installment payment, consignment, and sales. Due to the transfer of ownership and use rights at the same time, the risk of fund recovery is relatively high.
    So someone began to borrow the practice of traditional leasing to retain the ownership of the sales items in the seller. The buyer only enjoys the right to use. It is not until the rent of the leaser's integration. The price is transferred to the buyer.
    The method is called "financial leasing". In 1952, the United States established the world's first financial leasing company -US rental company (now renamed the United States International Leasing Company), which created a precedent for modern leasing.
    Reference information Source: Baidu Encyclopedia-Financial Leasing