Legal Subjectivity:

1. Loan Amount and Loan Term Bank loans are greatly affected by national macro-control and central bank credit policies, and are generally mainly working capital loans with a term of less than one year. Moreover, the loan amount is relatively limited, while the financing amount of financial leasing is determined by the customer's qualifications and the value of the equipment. The amount range is larger and the term is longer. 2. Loan Procedures and Loan Thresholds The credit review procedures for financial leasing are simple, and financing and financing are integrated, which greatly saves time and enables enterprises to obtain equipment use rights and funds in the shortest possible time. However, banks have many approval steps, take a long time, and the approval procedures are cumbersome. In terms of repayment flexibility, financial leasing is more flexible. Bank loans are generally provided in one lump sum and repaid in one lump sum. When the loan is repaid, the borrower faces greater financial pressure. However, leasing companies can customize flexible repayment arrangements for each company based on its financial strength, sales seasonality, etc., such as unequal repayments, so that the lessee can customize the rent repayment schedule and make reasonable arrangements based on his or her business situation. funds. 3. Loan costs It is generally believed that bank loans are lower than financial leasing costs, and leasing interest rates are usually higher than bank loan interest rates. Moreover, financial leasing companies will also charge a certain handling fee in the initial stage. However, there is one factor that is often overlooked by financiers, that is, when using financial leasing, the lessee company can enjoy accelerated depreciation benefits. In addition, the Ministry of Finance and the State Administration of Taxation stipulate that for machinery and equipment rented through financial leasing for technological transformation by enterprises, the depreciation period can be determined based on the shorter of the lease period and the depreciation period prescribed by the state, but the minimum depreciation period shall not be shorter than three years. . If you use bank loans to purchase equipment yourself, you cannot enjoy this preferential treatment. In general, they are: loan amount and loan term; loan procedures and loan thresholds; loan costs.