Financial Lease In The Application Of SMEs In China

Since the reform and opening up, Chinese SMEs have contributed greatly to the national economic development. And the rapid development of the national economy has provided a favorable external environment to the SMEs. They are complementary. However, financing difficulty has long been a main obstacle to SMEs'development in China. Financial problems could not be solved well. Then these companies will be difficult to develop, even lead to the eventual bankruptcy. Over the past many of the traditional financing models for SMEs, its applicability is limited.This paper first mentions the concept which financial lease, analysis of the financing situation of SMEs and to explore the reasons for their difficulties in financing. Financial lease model for analysis of comparative advantage and risk analysis, proves that some applicability to easing the problem of financing SMEs. Through the different plan contrast and the case analysis, it has better proven its feasibility. Finally, based on corporate life cycle theory, according to the financial needs of small and medium characteristics at different stages of development, it makes recommendations for the selection, uses the specific forms of financial lease and let the significance of this paper be more practical.This paper uses illustration as the main way, carries on the quantitative analysis on the basis of statistical data and graph foundation. Through the combination of quantitative and qualitative analysis between scientific feasibility studies, it achieves guiding significance, In addition, the paper also uses the comparative analysis and case study approaches as supplement, making papers research results more viable and more practical.This paper is divided into five parts, the basic framework for the study are as follows:Chapter 1 is the introduction. This section describes the research background and significance, and related international research review. Chapter 2 is about concepts and theories of financing lease. This part starts with some aspects like the basic concept of financial lease, order and form, succinctly describes the essence of financial lease. Based on this description of its related theories, it has laid a theoretical foundation for the following study.Chapter 3 is an overview about the situation of Chinese SMEs in financial lease. This study is aimed at SMEs in China, so that it is to define our standards as a starting point for SMEs. We can see its importance to Chinese economic development from the development of small and medium enterprises in China. Then it analyses the present situation of its main development constraints (financing problem), and explore the internal and external causes.Chapter 4 is that advantages, decision-making, risk and case analysis of Chinese SMEs which using financing lease. This section seeks more effective ways to ease the financing of SMEs based on the third chapter, it analyzes the advantages from the qualitative point. Besides that, it analyzes decisions from a quantitative point of view, but any financing models will not be perfect. This section also contains risk analysis of financial lease. Finally, it proves the certain effectiveness to difficulties in financing of SMEs through a full case analysis.Chapter 5 is about the recommendations of financial lease option and use according to the development of Chinese SMEs at different stages.The part summarizes characteristics of the funding needs of enterprises in different stages by the theory of enterprise life cycle, thus further analyzes the SMEs selection and use of financial lease in various stages of the life cycle.