A Study On Design Of T+O Joint Leasing Business Model Of PA Company

Financial leasing is a new type of financing subsequent to stocks, bonds and bank loans. Born in 1952 in the United States as an integration of financing and financial products, it is widely used in developed countries and boasts a high market share. Financial leasing industry in China began in 1981 and 2007 witnessed itsfast advancement. Compared with what it is in developed countries, China's financial leasing industry currently finds itself in the initial stage of extensive growth.As a professional finance leasing company under the Ping An Group, PA has rapidly exploited the market and occupied a good market share in the fierce competition. As a result, it has not only realized the rapid development of its own assets and the promotion of its net profit, but it has also contributed to the development of other financial sectors through the integrated financial platform. However, with its own development and the changes in bothinternal and external environment, a lot of deficiencies have been exposed concerning the traditional business models.PA's traditional business models mainly include direct financing leases, after-lease leases, business factoring and entrusted loans, which profit primarily by interest differentials. With the explosive development of the domestic financial industry, leasing companies are facing fierce competition not only from the same industry but also from the banks, brokerage investment banking, investment funds and other investment institutions. In the long term, spreads tend to narrow slowly.In order to open up a new profit growth point and also enhance the customer loyalty, PA Company chooses the interbank financial asset transaction as the business model innovation direction. In business practice, interbank trading assets include its own stock assets and channel class assets, the latter being the T+O joint leasing business model.That is,PA company sales off the financial leasing claims to other financial leasing companieson the date of theform of financial leases.The Shuanghuan technology project is the first T+O joint leasing business of PA company. The project first sets the T+O joint leasing business model by business model matching degree analysis, then forms the design idea through internal and external feasibility analysis and finally puts it into practice. Before the implementation, PA company first has a discussion with Shuanghuan technology and the cooperative leasing company to confirm the specific program and transaction process, then signsfinancial leasing contracts, and a debt transfer agreement with them respectively and finally achieves the financial leasing Formation of Creditor 's Rights and T+O Debt Selling on the appointed date agreed upon by three parties. The T+O joint leasing business model is the key to a win-win situation for all parties involved.The innovation lies in, according to customer needs, the effective mining of customer resources and the potential value of peer cooperationto make up for the shortcomings of the traditional business models.Through the in-depth analysis ofShuanghuan technology project, it is hard to deny that T+O joint leasing business model has a practical value in finance leasing industry.It is suggested that in the real application one should, according to the distinct characteristics of individual financial institutions,carefully select the purchaser of the assets, strictly examine the ownership of the leased property and strengthen the post-loan asset management.