The Research Of Zhejiang Private Enterprises Financing Lease Business

The financing has been the bottleneck issue in the development of private enterprises.Generally, the financing lease is the main common financing tool only inferior to thebanking loan and plays a very important role in solving the problem of firms’ financingabroad. However, at present the private enterprises have lacked the basic ideas on thefinancing lease in their financing in China, and it causes the lower level of its application. Inthis context, the research subject of the thesis is focused on the research on the issues of thefinancing lease of the private enterprises in Zhejiang based on the questionnaire research andcase study from the private enterprises in Zhejiang. The author reviews the literatures on thefinancing lease both in China and abroad, researches on the large quantity of data of thestatus quo of the financing lease in Zhejiang private firms and the business operations of thefinancing lease firms, and consults from the lease experts. With the in-depth process of thematerials and data and statistic methodology, the barriers to and reasons on the financinglease of the private firms are analyzed; the functions of the depreciation of the financinglease assets accounted into the firm’s financial accounting system are financially analyzed,and it reveals that the cash flow will increase in some extent through the equipments offinancing lease, and the increased cash flow can be the source of firm’s internal financing.With the game analysis of the selection of the ways of the lease and the credit cooperation between the firms concerned, it is found that the increase of the penetration rate of thefinancing lease can promote the development of the business of the financing lease, and theauthor advocates to promote the establishment of the firms’“credit alliance” by bringing theexternal intervening factors into effect so as to enhance the general credit level of the privatefirms and to reduce the costs, such as mortgage cost of the financing lease at a group level.The key points of the thesis are: the first, by doing basic and exploratory researches onthe financing lease of the Zhejiang private sectors, positive analysis are made on thefinancing lease. The second, the author argues the feasibilities of establishing the “creditalliance” of the private firms. By game analytical approach, it is proved that it can foster theformation of cooperation organization to introduce the external intervening factors so as toupgrade the credit ability of the private enterprises and reduce the overall mortgage costs,and some practical suggestions on the strategies and policies are made on the basis of theresults.