Comparative Advantages of Financial Leasing
Less Initial Payments
In financial leasing, it takes less initial payments than those of bank mortgages which are subject to the regulation of state financial supervision, thus making it difficult to handle the initial payments in amount flexibly. In financial leasing, however, the leasers can determine the amounts according to lessees’ practical situations in asset statuses, cash flows, credit conditions and guarantee statues etc., which is an effective way to relieve lessees’ stress of initial payments. This is exactly what construction enterprises which are in dramatic growth and short of capitals need most.

Flexible Payment Models
Based on leasers’ expectations on their own future cash flows, they will adopt best payment models according to the lessees’ future cash flows whose payments may be unequal in different terms. Once the lessees have signed the contracts and confirmed the payments of each term, they are obliged to carry them out strictly according to the contracts. With the increasingly growing distant control tech, more flexible payment methods will be applied to different using conditions of lessees, completely matching with their cash flows and minimizing their operation risks.

Practical Credit Examinations
Banks set higher requirements for enterprises’ financial indexes, such as assets and liabilities in the credit examination of mortgaging loans. However, these criteria are established on the data of large-scale and superior enterprises, which are not applicable to construction enterprises in rapid development. The financial leases focus mainly on the payment abilities and willingness of the construction enterprises, as well as the future cash flows largely in a dynamic way instead of showing the assets and liability conditions in a static manner. Thus, the criteria in the credit examination will be more useful and practical.

Convenient and Fast Business Processing
There are two objects in financial leasing business, that is, natural person and legal person, which is convenient for various customers to acquire equipment, avoiding the legal risks of banking mortgage given to legal customers in the name of individuals. As a manufacturer, Zoomlion also does business in financial leasing. Its branch company of financial leasing can make use of its nationwide sales network to provide its customers with good financial leasing service, getting rid of problems lying in mortgage of different places; this service also plays an important role in marketing its products. Its single and professional business will offer the customers efficient and convenient financial leasing service.

Easier to Catch Business Opportunities
It may take a rather long time for construction enterprises to purchase equipment for production totally through self-accumulation. Moreover, in this fast developing era, good opportunities are easy to elapse, so it’s very important to have a timely grasp. Financial leasing operation supplies construction machinery first and asks for payments from the derived revenues later. We can say that it borrows chicken to get eggs through which chicken are bought. With no chicken, eggs can also be produced by borrowed chicken which will be owned finally.