Research On Financing Problems Of Chinese Financial Leasing Companies

Financial lease is a financial transaction with combined characteristics of financing and non-currency leasing. Since the first local financial leasing company established in 1981, Chinese financial leasing industry has passed through the development stage at the beginning, the stagnation stage in 1990s and the recovery stage that Bank-established Financial Leasing Companies emerged since 2007. China has become the world’s second largest financial leasing market behind US, and the industry is likely to remain a rapid development trend.Due to the growth of business volume, the financing demand of financial leasing company becomes larger and larger. Whether the financial leasing company could continuously develop or not is determined by its ability to rapidly raise money with low-cost. Based on the view above, this paper analyzed the applicable financing method for financial leasing companies and found out the factors which influence the financial results. This paper also studied the financing method of foreign financial leasing companies and made new ideas and suggestions about how to broaden local financial leasing companies’financial channels.This paper is organized as follow. First of all, it stated the background, methodology and major structure of the argument. Secondly, the characteristics of financial leasing companies’ operating and financing model were analyzed. Thirdly, the current financing methods and the factors which may impact them were pointed out. Fourthly, the case of "ABC" company was discussed to illustrate the available financing methods and reasons why certain method was used. Further, the paper also disclosed the problems that "ABC" company currently faced. At last, addressing to those problems, this paper offered some possible solutions.