The difference between financial leasing and bank loans is as follows:

1. Different concepts

Bank loans refer to banks lending funds at a certain interest rate according to national policies An economic act of giving funds to those in need and agreeing to return them within a time limit. Generally, you are required to provide a guarantee, a house mortgage, or proof of income, and have a good personal credit report before you can apply.

Financial leasing is currently the most common and basic form of non-bank finance in the world. It means that the lessor enters into a supply contract with a third party at the request of the lessee. According to this contract, the lessor contributes funds to purchase the equipment selected by the lessee. At the same time, the lessor enters into a lease contract with the lessee, rents the equipment to the lessee, and charges a certain amount of rent from the lessee.

2. Different charges

Compared with bank loans, financial leasing mainly charges more service fees and nominal goods prices. The service fee is the lease amount multiplied by the service rate, and the nominal price is the lease amount multiplied by the nominal price rate. The service fee is a one-time charge at the initial stage of project implementation, ranging from 1 to 3.5 based on the number of years. In fact, based on an average annual calculation, it is only about 1 per year.

The nominal price is only charged once at the end of the project, generally only accounting for 0.5~1 of the lease amount. And if the customer can repay the rent on time, the leasing company can also change the nominal price to one yuan.

3. Different quotas and terms

Bank loan quotas are limited due to the impact of national macro-control and central bank credit policies. The amount of financial leasing is mainly determined based on the qualifications of the borrower and the value of the corresponding fixed assets. The amount range is the largest for bank loans. Bank loan terms are mainly less than one year, while finance lease terms are longer.

4. Different procedures and thresholds

Bank loans are mainly loaned out in one lump sum and repaid in one lump sum. When repaying the loan, you will face relatively large financial pressure. Financial leasing can be reasonably arranged based on the borrower's capital situation and seasonal changes in sales. There are many procedures for bank loan approval, the approval time is very long, and the procedures are even more cumbersome. The credit review of financial leasing is relatively simpler, because it integrates financing and financing, which can greatly save processing time.