The difference between financial leasing and traditional leasing

An essential difference between financial leasing and traditional leasing is that traditional leasing calculates the rent based on the time when the lessee leases the property, while financial leasing calculates the rent based on the time when the lessee occupies the financing cost. It is a highly adaptable financing method when the market economy develops to a certain stage. It is a new way of trading in the United States in the 1950s. Because it adapted to the requirements of modern economic development, it developed rapidly around the world in the 1960s and 1970s. Nowadays, it has become one of the main financing methods for enterprises to update equipment, and is known as "sunrise industry".

This business model has developed rapidly for more than 20 years since it was introduced to China in the early 1980s. However, compared with developed countries, the advantages of leasing are far from being brought into play, and the market potential is great.

(The above answers were published on 20 15- 10-26. Please refer to the current actual purchase policy. )

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