The Analysis Of Company A’s Financial Leasing

In1980s, financial leasing was introduced into China as a new way of financing. Compared with other traditional means of financing, financial leasing has obvious advantages. Therefore, it is wise for companies to turn to financial leasing to overcome the difficulty of financing under current circumstance.This paper summarizes the accomplishment of domestic and international research on financial leasing, then identifies the deficiency of existing research in hope of filling some gaps in this research area.This paper choose Company A’s financial leasing sale leaseback project. Firstly this paper presents a detailed introduction of Company A’s production and management, and analyzes the general environment. Secondly, we presents a detailed introduction of Company A’s, financial leasing sale leaseback project and then uses qualitative and quantitative analysis method while comparing two financing methods of finance leases and bank loans, concludes that financial leasing, relative to bank loan, is more suitable for A’s case. At the same time, through the analysis of the case, this paper also identifies Company A’s financial leasing sale leaseback project problems and potential risks, proposes concrete solutions for these problems and risks, from the point of view of both Asset Management Company C and Company A, and then states that financial leasing is a good choice for A financing. Finally, through financial leasing analysis of Company A, this paper extends the problems to other similar projects and proposes policy recommendations to improve the status quo of China’s finance lease for enterprises themselves, the financial leasing industry and the government.