Financial Risk Investigation On Finance Lease Of A Company Form ZH Company

Financial leasing is a means of financing business assets with a contract between leasee and lessor rooted firmly in the economic benefit. There are many uncertain risk factors result from large investment, long-term repayment and undefined factors, which will make lessor to suffer heavy loss during the financial leasing. High risk is the restrictive factor for financial leasing developing in China. In order to flourish financial leasing, we should focus on risk identification, risk evaluation and risk prevention, etc.First and foremost, the thesis will introduce the lessor, ZH Company, and its own strategic objective, as well as the lessee, A Company, and its financing needs. In addition, it will analyze the case related to ZH Company and A Company, for instance, analyzing the financial statement of lessee and the profitability of the case. Last but not the least, the thesis will evaluate the case and give some suggestions. This essay is aim to analyze the risk of financial leasing by the perspective of financial management. Meanwhile, it will use the advices from the case to decide to accept, transfer and avoid the financial risk. Finally, the purpose of this thesis is to find a way for Chinese financial leasing company to avoid financial risk.The author prefers to give some advices to avoid financial risk through analyzing the financial leasing case. Additional, in order to thrive the financial leasing company, the author hopes to find a comprehensive method to manage financial risk.