Research On The Application Of Financial Leasing Factoring In China’s Energy Performance Contracting

Energy Performance Contracting(EPC) is under the dual background of international pressure to reduce emissions and the sustainable development needs, found out as an effective way of energy conservation by all around the world. Especially after the successful practice of the Western developed countries, the birth of the EPC mechanism as the business model, in the form of Energy Service Company(ESCO) as representative’s new industries - energy-saving services industry. But the development of the EPC in China is no good, compared with the abroad. Encountered some obstacles such as financial barriers, policy barriers, information barriers, human disorders. This paper studies the use of factoring finance lease mode to solve the development process’s obstacles of EPC - financing obstacles.First of all, this paper described the EPC’s content, basic process and mode of operation in detail, given the concept, function and classification of financial leasing, and extracted the principle and definition of financial leasing factoring is based on the principle of factoring. Analyzed the present situation of EPC’s development, summing up all financing model of EPC, given the reasons and the status quo of ESCO’s financing difficulties, explained the status quo of domestic and foreign financial leasing development by concrete data, understands their development level in the developed countries, analysised the gap between domestic and abroad, obtained conclusion of financial leasing in our country has advantages and broad prospects for development, analysised the connection and application status of financial leasing in EPC. Then, due to the problems of financial leasing’s application in EPC, proposeed the fit of financial leasing factoring and EPC, and given feasibility analysis of factoring financing lease’s application in EPC. Finally, based on the above fit and feasibilit, designs operation mode, and predict the possible risks. Combine the basic principles and steps of Factor analysis method, this paper has risk assessment about applications of financial leasing factoring in EPC, give a specific evaluation process, obtain conclusions and provide evaluate suggestions.As one of the financing model, Financial leasing factoring is developed on the basis of financial leasing. Financial leasing factoring is applied to the EPC, both good solution to the financing problem of the EPC, and can promote the development of financial leasing, also expand business of commercial banks. It can achieve the four win-win situation in users, ESCO, financial leasing companies and commercial banks. The ultimate goal is to promote the development of EPC business, contribute to energy conservation, build a harmonious society.