Financing business of financing lease structurization

Service Description

It is the transaction activity through which a lessor rents out the leasehold properties obtained from suppliers to the lessee for occupancy and use by contract according to the selection or acceptance of the leasehold properties and suppliers by the lessee, and charges the lessee of rents. CGB cooperates with financial lease companies for designing the financing solutions and provides funds by ways such as receivable lease fee transfer, thus meeting special requirements of CGB customers (lessee and supplier) in aspects such as financing requirement, way of repayment of principal and payment of interest, cost, and tax preference.

Features

1.        The service can meet the requirement of parties demanding equipment for hiring equipment and meet the requirement of parties producing equipment for selling the products.

2.        An enterprise can also sell the equipment it owns to a leasing company at the current value (net value), and then hire the equipment for continued use from the leasing company (lease-back). In this way, the enterprise can not only keep the right to use the existing equipment, but also turn the funds used for the equipment into the working capital and investment fund that the enterprise urgently needs. The fixed assets of the enterprise are thus vitalized, and the utilization rate of funds can be increased.

3.        Financing lease has advantages that other financing ways do not have in aspects such as the way of repaying principal and paying interest, cost, and tax preference.

4.        Support of funds can be provided to cooperation financial institutions by ways such as receivable lease fee transfer, helping cooperation financial institutions fully utilize bank channels to meet varied requirements of customers for financing.

Applicable To

Financial lease companies

Corporate clients with requirements for financing lease business