Compared with bank loans, financial leasing mainly has the following four advantages: 1) Financing amount. Bank loans are greatly affected by national macro-control and central bank credit policies; while the financing amount of financial leasing is determined by customer qualifications and equipment value, and the amount range is large; 2) Financing term. Banks generally focus on working capital loans with a term of less than one year; financial leases can be up to 3 years; 3) Repayment methods. The bank's principal repayment method is relatively single; financial leasing can provide flexible installment plans; 4) Guarantee method. Banks generally require real estate mortgages or approved third-party guarantees; financial leasing is mainly determined flexibly based on customer qualifications, and is generally mortgaged with purchased machine tools.

Financial Leasing, also known as Equipment Leasing or Modern Leasing, means that the lessor contributes capital based on the lessee’s specific requirements for the leased items and the selection of the supplier. The leased object is purchased from the supplier and leased to the lessee, and the lessee pays the rent in installments to the lessor. During the lease period, the ownership of the leased object belongs to the lessor, and the lessee has the right to use the leased object. After the lease term expires, the rent has been paid and the lessee has fulfilled all its obligations in accordance with the provisions of the financial lease contract, if there is no agreement on the ownership of the leased object or the agreement is unclear, a supplement can be agreed; if a supplementary agreement cannot be reached, the ownership of the leased object shall be determined in accordance with the relevant provisions of the contract or If the transaction custom is confirmed but still cannot be determined, the ownership of the leased object belongs to the lessor.

A small loan company is a limited liability company or a joint-stock company invested and established by natural persons, corporate legal persons and other social organizations, which does not accept public deposits and operates small loan business. A small loan company is an enterprise legal person, has independent legal person property, enjoys legal person property rights, and bears civil liability for its debts with all its property. The main sources of funds for small loan companies are capital paid by shareholders, donated funds, and funds from no more than two banking financial institutions.