Research On The Selection Of Financing Methods Of Asset-Backed Commercial Paper For Financial Leasing Companies

In the development process of over forty years,the financial leasing industry in China has been continuously expanding in scale,with the number of financial leasing companies and the balance of financial leasing contracts constantly increasing.Financial leasing,as a financing method,plays a crucial role in China’s economic development and has become the second largest financing method after bank credit.While financial leasing companies provide financing needs for other enterprises,they also require a large amount of funds.Whether they can obtain sufficient funds has become a key factor in ensuring the development of the financial leasing industry.Although China’s financial leasing companies are committed to continuously expanding financing channels and enriching enterprise financing methods,the current problems that financial leasing companies have to face include excessive reliance on bank loans for financing,difficulties in financing through direct financing,and mismatched financing terms and asset terms.In June 2020,the China Association of Interbank Market Dealers innovatively launched an innovative asset-backed commercial paper securitization product.Compared with traditional asset securitization products,it has the characteristics of rolling issuance,flexibility,convenience,and higher standardization.For financial leasing companies with a large amount of existing assets and income mainly from interest differences,it can not only reduce enterprise financing costs but also activate existing assets,Issuing asset-backed commercial paper financing has become one of the financing options for leasing companies.In order to help financial leasing companies better understand the innovative financing method of asset-backed commercial paper and provide new ideas for the selection of financing methods for financial leasing companies,this article adopts a case study method under the guidance of pecking order financing theory,net income theory,asset restructuring theory,risk isolation theory,and credit enhancement theory,and selects Anji Leasing Company,which was one of the first pilot companies to issue asset-backed commercial paper,as an example,Taking Anji Leasing No.1 asset-backed commercial paper as an example,this article introduces its overview of asset-backed commercial paper financing,analyzes the reasons why Anji Leasing chooses to issue asset-backed commercial paper financing,and compares the asset-backed commercial paper product with traditional asset securitization products.Through case analysis,it is found that asset-backed commercial paper financing is helpful for financing leasing companies,It can not only provide low-cost financing methods for financial leasing companies,but also activate existing assets and reduce liquidity risks.At the same time,this article adopts the Analytic Hierarchy Process to construct a financing method selection model for financing leasing companies,and uses the approximate ideal solution ranking method to study the order of Anji Leasing’s existing financing methods selection.The optimal financing method for Anji Leasing is selected,and it is found that issuing asset-backed commercial paper financing methods is superior to other financing methods,providing good reference for other financing leasing companies.From this,the case inspiration and suggestions of this article have been drawn.When choosing financing methods,financial leasing companies should choose appropriate financing methods based on their own situation,actively choose to issue asset-backed commercial paper financing,and also strengthen their learning and understanding of asset-backed commercial paper.