Finance Leases Tripartite Risk Management Study

Financial leasing is a kind of new-type financial transaction expressed the combination between the physical credit and the bank credit of the modern financial development. Comparing the traditional bank credit, financial leasing as a new financial method owns some unique features. Financial leasing has played an important role in technological upgrade to the enterprises, structure adjustment of industry, improvement of financial market, and regulation of macro economy. Currently, the financial leasing business in U.S.A., Japan and Europe develop very quickly. The financial leasing is the financial tool which is next to bank credit. All over the world, near 1/3 investments have accomplished by means of finance lease at the present time. The financial leasing combine finance, trade,produce,fit together bank credit,business reputation,consume reputation effectively, it is important way that optimize resource allocation.For the renter, the financial leasing can solve the funds shortage,accelerate the depreciation, enjoy the revenue from special tax discount,play down the liabilities ratio, optimize the property structure,Strengthen the property circulation, reduce the finance risk . For the lesser,the financial leasing can extend product sale and market share, gain smooth rent and so on, guarantee rent of recovering in time,simplify the product sale link, accelerate the business enterprise fund turnover. But, For the lesser, the biggest risk is the ability of renter to defray rent on time, which will directly affect the management and the existence of lesser. To guarantor, the behavior of renter will become decisive factor it will undertake contingent liability. So, there are lots of risks in the process of financial leasing business.How predict the risk with accuracy, how evade the risk reasonably, this request has very strong realistic meaning towards the development of our country financial leasing business. In this paper, the advantages and disadvantages of Financial Leasing were introduced. the risks face the lesser,renter ,and guarantor were analyzed. Based on analyzing, the author advanced some models,indexes and methods for forecasting, guarding and controlling Financial Leasing risk.