The profit model of Japanese financial leasing is:

Mainly include: spread income, tax saving income, service income, residual value income, and subsidy income.

Tax-saving income and subsidy income are the characteristic profit models of Japanese leasing companies. Japanese leasing companies have an operating lease model in which the lessor bears the residual value risk of the asset and the lessee has a purchase option.

It gives full play to the leverage financing function and distributes tax benefits between lessors and lessees to achieve incremental returns.