Why is it called "financial leasing"? What is the relationship with "financing"?

Financial leasing is a kind of financing. Financial leasing is a combination of financing and finance, which has dual functions of finance and trade. Financial leasing includes direct purchase leasing, after-sale leaseback and leveraged leasing. It is essentially a financial transaction attached to traditional leasing, and it is a special financial instrument.

Financing can be divided into direct financing and indirect financing. Direct financing is a financing activity that the government, enterprises, institutions and individuals directly go to the lender of last resort without the medium of financial institutions. The financing funds are directly used for production, investment and consumption.

Indirect financing is a financing activity from the last borrower to the last lender with financial institutions as the medium, such as corporate financing banks and trust companies.

Extended data:

First, the origin of financial leasing

Modern financial leasing originated in the United States after World War II. After the second world war, the United States industrialized overproduction. In order to promote their own equipment, manufacturers began to provide financial services to users, that is, to sell their own equipment by installment, consignment and credit sale. Because the ownership and use right are transferred at the same time, the risk of capital recovery is relatively high.

So some people began to borrow the traditional leasing method, keeping the ownership of the sold goods in the seller, and the buyer only enjoyed the right to use, and the ownership was transferred to the buyer at a symbolic price until all the funds raised by the lessor were recovered by rent.

This method is called "financial leasing". 1952, the United States established the world's first financial leasing company-American leasing company (now renamed American international leasing company), which pioneered modern leasing.

Second, the specific characteristics

1. The leased property is determined by the lessee, and the lessor purchases and rents it to the lessee for use, and can only rent it to one enterprise during the lease period.

2. The lessee is responsible for the acceptance of the leased property provided by the manufacturer, and the lessor does not guarantee the quality and technical condition of the leased property.

3. The lessor retains the ownership of the leased property, and the lessee enjoys the right to use it by paying the rent during the lease period, and is responsible for the management, repair and maintenance of the leased property during the lease period.

4. Once the lease contract is signed, neither party has the right to unilaterally terminate the contract during the lease period. Only when the leased property is destroyed or proved to lose its use value can the contract be terminated, and a considerable fine will be paid for breaking the contract without reason.

5. After the lease term ends, the lessee generally has two options for the lease item: to keep the lease item and to return the lease item. If it is necessary to keep the leased property, the purchase price can be determined by both parties through consultation.

Baidu encyclopedia-financing

Baidu encyclopedia-financing lease