Study On The Application Of Financial Leasing In The Financing Of Expressway Industry In China

Motorway is an important transportation infrastructure to facilitate people's lives,improve the efficiency of freight transport,passenger transport,and promote economic development.The research on the investment and financing of its construction and operation has been a hot topic all over the world.After more than 30 years of development,China's motorway industry has surpassed the old developed countries,Motorway mileage reached the world's first.However,compared with China's vast land,We Still need to build a large number of motorways,a huge amount of construction tasks means huge demand for funds.At present,there are many problems,such as excessive reliance on bank loans,lack of financing,and so on,which restrict the development of the motorway industry.Financial leasing is an important booster of economic growth.Financial leasing companies always have adequate sources of funding,and because the industry transition pressure increases,the increasingly fierce market competition,the traditional manufacturing industry has gradually cannot meet the needs of profit,leasing companies also need to expand new areas of investment to increase profits.In this case,if the financing of motorway enterprises using financing lease way,it will make an inventory of fixed assets,improve operational efficiency,and the enterprises through signing a flexible repayment agreement to ease the annual debt repayment pressure.Firstly,This paper introduces the Henan Zhongyuan Expressway Co.,Ltd.company's business process and the financing of the year,Through quantitative analysis,it is concluded that it is very difficult for enterprises to obtain loans in traditional financing channels.After comparing the cost of financing lease,bank credit,bond issuance,we can concluded that the cost of financing lease is not high.And through the comparison,we can find that use of the financing lease has the unique advantages.At the end of the article,we summarizes the existing problems of the three party participants in the case,and puts forward some suggestions for the improvement of these problems.