Research On RY Company's Leasing Practices

Small and medium-sized enterprises occupy an important position in the development of the national economy,and have a wide range of social and economic base.Compared with large enterprises,small and medium-sized enterprises obtain less financing quota,high interest rate,weak financing consciousness and the lack of financing planning,which seriously restricts the development and the growth of small and medium-sized enterprises.Financing difficulty has become an important factor that restricts the development and expansion of small and medium-sized enterprises.To solve the financing difficulty of small and medium-sized enterprises has become an important first choice to promote the development of small and medium-sized enterprisesFinancial leasing began in the United States.In the 1980 s,China began to introduce financial leasing and continue to grow.Financial leasing can help enterprises to activate fixed assets,solve the financing problem of small and medium-sized enterprises,and provide funds for small and medium-sized enterprises to purchase production equipment to achieve equipment upgrading.RY Company described in this paper is a miniature of the small and medium-sized manufacturing industry in China.Because the overstock of inventory seriously affects the liquidity of short-term capital,most of the land and factory buildings in RY Company have been mortgaged by banks,but there are a large number of production equipment in the factory buildings.Because of its own production equipment,it meets the essential requirements of a leasing company's business.At the same time,the shortage of RY Company's capital can be solved by sales leaseback.This paper studies the financing case of small and medium-sized manufacturing RY company,tries to focus on the role and significance of financing lease tools to small and medium-sized manufacturing enterprises and to seek a solution to the problem of financing difficulty and financing expensiveness which are concerned by both the academic and the industry.This paper first describes the definition and characteristics of financial leasing,the traditional business model of financial leasing,and the business process of financial leasing company.Based on the analysis of RY Company's operation,financial situation,the background of finance lease application and the motivation,the paper analyzes the financing difficulties of RY Company.This paper analyzes the achievements and problems in the application of Ry Company's financial leasing.The achievements are as follows: the effective activation of the stock of assets,reducing the short-term shortage of funds due to the possibility of short-term loans overdue and tax depreciation concessions to reduce costs.But in the process of application,the following problems inevitably exist in RY Company: the lack of deep understanding of financial leasing business,the neglect of the importance of equipment ownership certificate,theobvious limitation of using sale leaseback and the contract risk in the process of financial leasing.Finally,in view of the existing problems,based on the lessee's point of view,the countermeasures of perfecting the application of financial lease are as follows:strengthening the understanding of financial lease,deepening the understanding of the ownership of equipment and widening the different ways of financial lease.