The Motivation and Conclusion of Enterprise Finance Lease

Finance lease, a kind of financing way and trade form, is a combination of finance funds and assets. Compared with foreign countries, the financial leasing industry in China is not mature. The motives of financing lease are an enterprise ' demand of capital, the need of asset management and the drive of interests in rent, service charge, asset residual value and risks. Finance lease requires three participants. Contracts are signed between lessees and leasers. Ownership of assets does not transfer in the contract period. When the contract ends, ownership of the assets may shift. Finance lease raises the amount of working capital, promotes the trade level of enterprises,and realizes the diversification strategy of enterprises.