Financial Analysis Of Smes’ Use Of Financial Leasing

With the continuous development of China’s economy,the role played by SMEs has become more and more obvious.According to the data released by the Bureau of Economic Statistics of China,the number of SMEs in China has reached nearly 40 million in 2017,which is very useful for stimulating the economy and expanding employment opportunities.Great help.However,due to the adjustment and transformation of China’s economic system,SMEs have been subjected to unprecedented resistance and slowed down the development process.Financing difficulties are one of the main reasons.The general financing methods of SMEs are divided into internal financing and external financing.However,due to the small scale of enterprises,low profits and almost zero retained capital,the financing of internal enterprises is less financing and cannot meet the needs of enterprises.External financing is traditional.The credit composition is difficult to obtain loans due to the information asymmetry of the enterprise,and the issuance of stocks and securities from the capital market is too high for the SMEs.Therefore,there is a need for financing methods that are more in line with the characteristics of SMEs.The financing difficulties of SMEs are the core issues in the financial management of SMEs in China.Financial leasing is a kind of financing method that combines the combination of financing and financing,the separation of “ownership” and “use right” of leaseholds,fast procedures,and flexible rent payment.According to its characteristics,it can reduce the financing threshold of small and medium-sized enterprises,improve the utilization rate of funds,etc.,and effectively alleviate the shortage of funds for small and medium-sized enterprises in China.In terms of structure,the paper is divided into five parts.The first part mainly introduces the background of the topic,the necessity of research and the method used in the research process.The second part is based on the analysis of the financing situation of SMEs in China,pointing out the reasons for the financing difficulties of SMEs and the difficulty of using traditional credit methods for SMEs.Solve the reasons for the shortage of funds;the third part mainly describes the advantages of financing leasing for SME financing.First introduce the financial leasing,including concepts,theories,types,and development status.Secondly,it is an analysis of the financing advantages of SMEs compared to traditional credit methods.And the analysis of the financial situation generated by the use of financial leasing by SMEs;the fourth part is the analysis of the use of Financing Leasing by S Natural Gas Equipment Company,including the introduction of the company’s environment,business processes,operating methods,the financial situation of S Company and financing according to it.The comparison of leasing examples with bank loans shows that financial leasing has more advantages;the last part is the countermeasures and suggestions for the development of financial leasing,and propose solutions to the problems in the case.