Sme Finance Leases

With the development of our national economy, medium and small-sized enterprises have formed an indispensable part and an important driving force in the development of our national economy. However, the capital raising issues of the medium and small-sized enterprises have always been a critical element that limits their further development, especially in the context of global financial crisis, the medium and small-sized enterprises are facing an increasingly severe capital raising situation and largening financial gap, which has resulted in many medium and small-sized enterprises' shutting down and even bankruptcy due to shortage of capital. Under such a condition, financial leasing, as a financial innovation product, has provided medium and small-sized enterprises with a novel idea.As a new financing approach combining financial funds and assets, financial leasing has become a belt that links finance, trade and manufacturing in developed market economic countries and is a effective measure to solve the difficulties of medium and small-sized enterprises in capital raising. However financial leasing has not been given sufficient attentions in our country. Although financial leasing in our country has a history of almost 30 years ever since it came into being in 1981, many issues still exist so far, such as imperfect laws and regulations, incomplete credit guarantee institutions and disordered supervision and control, which have led to extreme restricts to the development of financial leasing industry in our country and have resulted in the failure to play its proper role to help the medium and small-sized enterprises in our country.This article analyzes the current situation of medium and small-sized enterprises' difficulties in capital raising and its cause, and based on which puts forward the viewpoint of vigorously developing financial leasing for medium and small-sized enterprises, introduces in detail the development history and current situation of financial leasing industry in our country, summarizes the existing problems in the development of financial leasing of medium and small-sized enterprises, and provides corresponding solutions to the foresaid problems at the end of this article.