The leasing company signs long term cooperation agreement with a large equipment manufacturer. On the condition that the manufacture provides equipment buyback guarantee or other risk control measures, the leasing company provides financial leasing to manufacturer's clients, and the manufacturer offers equipment management afterwards. Such business mode is referred as lease for manufactures.
This mode can quickly help manufacturer to increase the sales of its services and products, improve the management of its accounts receivable, optimize its financial structure and reduce management cost. On the other hand, this mode can help the leasing company to enlarge client base, provide better equipment service to the lessee and improve assets disposal capability and realize the closed loop of financing capitals and financing goods. The high-end well-known manufacturer can even establish joint venture with the leasing company to drive the whole industry forward through joint operation and further improve brand competitiveness of the two sides.
Shanghai Electric Leasing Co., Ltd is one of the earliest financial leasing companies with a manufacturer background. Over the years, with the support of Electric Group, the company has established strategic partnership with many manufacturer groups and equipment manufacturers, and formed a mature and effective operation mode of financial leasing project that combines manufacturer and financing as well as a set of underwriting, management and operation mechanisms.